Gitler Department Store is located near the Village shopping mall. At the end of the company's year on December 31, 2002, the following accounts appeared in two of its trial balances.
Analysis reveals the following additional data.
1. Insurance expense and utilities expense are 60% selling and 40% administrative.
2. $20,000 of the mortgage payable is due for payment next year.
3. Depreciation on the building and property tax expense are administrative expenses; depreciation
on the equipment is a selling expense.
(a) Prepare a multiple-step income statement, a retained earnings statement, and a classified
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.
The solution includes a detailed solution in excel that shows the calculation and preparation of Gitler Department Store, multiple-step income statement, retained earnings statement, classified balance sheet, adjusting entries, closing entries