The Deluxe Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2019, the following accounts appeared in two of its trial balances.

Instructions
(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet. Notes payable are due in 2022.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.

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Unadjusted Adjusted Unadjusted Adjusted 29,000 29,000 37,000 3,500 2,500 2,500 15,000 61,700 96,000 11,000 4,500 8,000 700,000 8,500 Accounts Payable Accounts Receivable Accumulated Depr-Equip Cash 25,200 25,200 Inventory 30,500 45,000 26,000 40,000 30,500 34,000 26,000 40,000 507,000 10,000 6,500 146,000 Notes Payable Prepaid Insurance Property Tax Expense Property Taxes Payable 37,000 10,500 Cost of Goods Sold Dividends Freight-Out 507,000 Rent Expense 10,000 6,500 146,000 Retained Earnings Salaries and Wages Expense Sales Commissions Expense 15,000 61,700 96,000 6,500 Depreciation Expense Insurance Expense Interest Expense Interest Revenue 11,000 Sales Commissions Payable 7,000 Sales Returns and Allowances 6,400 Sales Revenue 8,000 Utilities Expense 8,000 700,000 8,500 6,400 8,000