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Financial accounting :Income statement

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.
Unadjusted Adjusted Unadjusted Adjusted
Accounts Payable $ 79,300 $ 79,300 Interest Payable $ 8,000
Accounts Receivable 50,300 50,300 Interest Revenue $ 4,000 $ 4,000
Accumulated Depr.- Bdlg 42,100 52,500 Merchandise Inventory 75,000 75,000
Accumulated Depr.- Equip. 29,600 42,900 Mortgage Payable 80,000 80,000
Building 190,000 190,000 Office Salaries Expense 32,000 32,000
Cash 23,000 23,000 Prepaid Insurance 9,600 2,400
Common Stock 110,000 110,000 Property Taxes Expenses 4,800
Cost of Goods Sold 412,700 412,700 Property Taxes Payable 4,800
Depr. Expense- Bdlg. 10,400 Retained Earnings 66,600 66,600
Depr. Expense- Equip. 13,300 Sales Salaries Expense 76,000 76,000
Dividends 28,000 28,000 Sales 628,000 628,000
Equipment 110,000 110,000 Sales Commissions Ex. 11,000 15,500
Insurance Expense 7,200 Sales Commissions Payable 4,500
Interest Expense 3,000 11,000 Sales Returns & Allowances 8,000 8,000
Utilities Expense 11,000 11,000

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.

? Prepare a multiple-step income statement, a retained earnings statement, a classified balance sheet.
? Journalize the adjusting entries that were made.
? Journalize the closing entries that are necessary.

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Solution Summary

Excel file contains solution for below mentioned question using th data given in the problem:
Prepare a multiple-step income statement, a retained earnings statement, a classified balance sheet.
? Journalize the adjusting entries that were made.
? Journalize the closing entries that are necessary.

$2.19