5.5 (LO 4, 5) Starz Department Store is located near the Towne Shopping Mall. At the...

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5.5 (LO 4, 5) Starz Department Store is located near the Towne Shopping Mall. At the end of the company's calendar year on December 31, 2020, the following accounts appeared in two of its trial balances. Adjusted £ 75,000 80,000 2,400 4,800 4,800 64,600 105,000 14,500 4,300 8,000 724,000 112,000 12,000 Unadjusted £ 75,000 80,000 9,600 Unadjusted Adjusted £ 77,300 50,300 52,500 42,700 290,000 23,800 412,700 23,500 24,000 110,000 7,200 8,100 5,100 4,000 £76,300 50,300 42,100 29,600 290,000 23,800 412,700 Inventory Mortgage Payable Prepaid Insurance Property Tax Expense Property Taxes Payable Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable ent 64,600 105,000 10,200 24,000 110,000 8,000 724,000 112,000 11,000 Sales Returns and Allowances Sales Revenue Share Capital-Ordinary Utilities Expense 3,000 4,000 Instructions a. Prepare an income statement, a retained earnings statement, and a classified statement of financial position. £16,000 of the mortgage payable is due for payment next year. b. Journalize the adjusting entries that were made. c. Journalize the closing entries that are necessary. 5.5 (LO 4, 5) Starz Department Store is located near the Towne Shopping Mall. At the end of the company's calendar year on December 31, 2020, the following accounts appeared in two of its trial balances. Adjusted £ 75,000 80,000 2,400 4,800 4,800 64,600 105,000 14,500 4,300 8,000 724,000 112,000 12,000 Unadjusted £ 75,000 80,000 9,600 Unadjusted Adjusted £ 77,300 50,300 52,500 42,700 290,000 23,800 412,700 23,500 24,000 110,000 7,200 8,100 5,100 4,000 £76,300 50,300 42,100 29,600 290,000 23,800 412,700 Inventory Mortgage Payable Prepaid Insurance Property Tax Expense Property Taxes Payable Retained Earnings Salaries and Wages Expense Sales Commissions Expense Sales Commissions Payable ent 64,600 105,000 10,200 24,000 110,000 8,000 724,000 112,000 11,000 Sales Returns and Allowances Sales Revenue Share Capital-Ordinary Utilities Expense 3,000 4,000 Instructions a. Prepare an income statement, a retained earnings statement, and a classified statement of financial position. £16,000 of the mortgage payable is due for payment next year. b. Journalize the adjusting entries that were made. c. Journalize the closing entries that are necessary.

Answer rating: 100% (QA)

a Income Statement Particulars Amount Amount Sales revenue 724000 Sales return and allowance 8000 a 716000 Interest revenue 4000 Total Revenue 720000 ... View the full answer