Mackey Department Store is located near the Village Shopping Mall. At the end of the company”s calendar year on December 31, 2014, the following accounts appeared in two of its trial balances.
|
Unadjusted |
Adjusted |
Unadjusted |
Adial |
||
|
Accounts Payable |
$ 79,300 |
$ 80,300 |
Inventory |
$ 75,000 |
$ 75,000 |
|
Accounts Receivable |
50,300 |
50,300 |
Mortgage Payable |
80,000 |
80,000 |
|
Accumulated Depr. Buildings |
42,100 |
52,500 |
Owner”s Capital |
176,600 |
176,600 |
|
Accumulated Depr. Equipment |
29,600 |
42,900 |
Owner”s Drawings |
28,000 |
28,000 |
|
Buildings |
290,000 |
290,000 |
Prepaid Insurance |
9,600 |
2,400 |
|
Cash |
23,800 |
23,800 |
Property Tax Expense |
4,800 |
|
|
Cost of Goods Sold |
412,700 |
412,700 |
Property Taxes Payable |
4,800 |
|
|
Depreciation Expense |
23,700 |
Salaries and Wages Expense |
108,000 |
108,000 |
|
|
Equipment |
110,000 |
110,000 |
Sales Commissions Expense |
10,200 |
14,500 |
|
Insurance Expense |
7,200 |
Sales Commissions Payable |
4,300 |
||
|
Interest Expense |
3,000 |
12,000 |
Sales Returns and Allowances |
8,000 |
8,000 |
|
Interest Payable |
9,000 |
Sales Revenue |
728,000 |
728,000 |
|
|
Interest Revenue |
4,000 |
4,000 |
Utilities Expense |
11,000 |
12,000 |
Instructions
(a) Prepare a multiple step income statement, an owner”s equity statement, and a classified balance sheet. $25,000 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.
(c) Gross profit $6,655