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P5-3A Maine Department Store is located near the Village Shopping Mall.

P5-3A


Maine Department Store is located near the Village Shopping Mall. At the end of the company's fiscal year on December 31, 2008, the following accounts appeared in two of its trial balances.
Unadjusted Adjusted Unadjusted Adjusted
Accounts Payable $79,300 $79,300 Interest Revenue $4,000 $4,000
Accounts Receivable 50,300 50,300 Merchandise Inventory 75,000 75,000
Accumulated Depr. - Building 42,100 52,500 Mortgage Payable 80,000 80,000
Accumulated Depr. - Equipment 29,600 42,900 Office Salaries Expense 32,000 32,000
Building 190,000 190,000 Prepaid Insurance 9,600 2,400
Cash 23,800 23,800 Property Tax Expense 4,800
Common Stock 116,600 116,600 Property Taxes Payable 4,800
Cost of Goods Sold 412,700 412,700 Retained Earnings 60,000 60,000
Depr. Expense - Building 10,400 Sales Salaries Expense 76,000 76,000
Depr. Expense- Equipment 13,300 Sales 628,000 628,000
Dividends 28,000 28,000 Sales Commissions Expense 10,200 14,500
Equipment 110,000 110,000 Sales Commissions Payable 4,300
Insurance Expense 7,200 Sales Returns and Allowances 8,000 8,000
Interest Expense 3,000 11,000 Utilities Expense 11,000 12,000
Interest Payable 8,000 Utilities Expense Payable 1,000


Analysis reveals the following additional data.

Insurance Expense and utilities Expense are 60% selling and 40% administrative.
$20,000 of the mortgage Payable is due for payment next year.
Depreciation on the building and property Tax Expense are administrative Expenses; depreciation on the equipment is a selling Expense.





Complete a multiple-step income statement, a retained earnings statement, and a classified balance sheet. (List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same, list alphabetically. List assets in order of liquidity and liabilities from largest to smallest eg 10, 5, 3, 2.)
MAINE DEPARTMENT STORE
Income Statement
For the Year Ended December 31, 2008
Sales Revenues
Acc. Dep.-EquipmentDividendsSales Commissions ExpenseEquipmentOffice Salaries ExpenseRetained EarningsSales Commissions PayableMortgage PayableInsurance ExpenseAccounts PayableAccounts ReceivableSalesInterest ExpenseUtilities Expense PayableInterest RevenueDepr. Expense-BuildingAcc. dep.-BuildingCommon StockCost of Goods SoldUtilities ExpenseBuildingCashDepr. Expense-EquipmentSales Salaries ExpenseSales Returns and AllowancesProperty Tax ExpenseProperty Taxes PayableInterest PayablePrepaid InsuranceMortgage Payable Due Next YearMerchandise Inventory $
Less: Property Tax ExpenseUtilities Expense PayableInterest RevenueMerchandise InventorySales returns and allowancesAccounts ReceivableDepr. Expense-EquipmentInterest ExpenseInsurance ExpenseSales Commissions ExpensePrepaid InsuranceSalesDividendsMortgage Payable Due Next YearAccounts PayableOffice Salaries ExpenseDepr. Expense-BuildingCommon StockUtilities ExpenseCashAcc. dep.-BuildingSales Salaries ExpenseSales Commissions PayableProperty Taxes PayableBuildingInterest PayableAcc. Dep.-EquipmentMortgage PayableRetained EarningsCost of Goods SoldEquipment

Net sales
Interest PayableSalesUtilities Expense PayableInterest ExpenseOffice Salaries ExpenseMortgage PayableInterest RevenueSales Commissions ExpenseSales Returns and AllowancesAccounts PayableMortgage Payable Due Next YearCost of Goods SoldCommon StockRetained EarningsProperty Tax ExpensePrepaid InsuranceDepr. Expense-EquipmentMerchandise InventoryAcc. dep.-BuildingAcc. Dep.-EquipmentDividendsBuildingAccounts ReceivableSales Salaries ExpenseCashEquipmentUtilities ExpenseInsurance ExpenseDepr. Expense-BuildingSales Commissions PayableProperty Taxes Payable

Gross profit

Operating Expenses
Selling Expenses
Acc. dep.-BuildingDepr. Expense-EquipmentProperty Tax ExpenseSales Salaries ExpenseMortgage PayableInterest ExpenseBuildingCashSalesUtilities ExpensePrepaid InsuranceInsurance ExpenseOffice Salaries ExpenseMerchandise InventoryAccounts ReceivableSales Commissions ExpenseCommon StockRetained EarningsSales Returns and AllowancesCost of Goods SoldDividendsProperty Taxes PayableDepr. Expense-BuildingEquipmentInterest PayableMortgage Payable Due Next YearInterest RevenueSales Commissions PayableUtilities Expense PayableAccounts PayableAcc. Dep.-Equipment $
Mortgage PayableAcc. dep.-BuildingInterest PayableCommon StockOffice Salaries ExpenseRetained EarningsCashCost of Goods SoldMortgage Payable Due Next YearDepr. Expense-BuildingDepr. Expense-EquipmentSales Commissions PayableProperty Taxes PayableSales Commissions ExpenseDividendsMerchandise InventoryUtilities Expense PayableAccounts ReceivableAccounts PayableEquipmentAcc. Dep.-EquipmentInsurance ExpenseInterest ExpenseInterest RevenueSales Returns and AllowancesPrepaid InsuranceSales Salaries ExpenseSalesBuildingUtilities ExpenseProperty Tax Expense
Accounts ReceivableSales Salaries ExpenseSalesSales Commissions ExpenseSales Returns and AllowancesUtilities Expense PayableAccounts PayableUtilities ExpenseSales Commissions PayableDividendsProperty Tax ExpenseCost of Goods SoldDepr. Expense-EquipmentMerchandise InventoryAcc. dep.-BuildingProperty Taxes PayableInterest PayableMortgage Payable Due Next YearAcc. Dep.-EquipmentBuildingPrepaid InsuranceCashDepr. Expense-BuildingMortgage PayableInterest ExpenseOffice Salaries ExpenseCommon StockRetained EarningsEquipmentInsurance ExpenseInterest Revenue
Cost of Goods SoldSales Salaries ExpenseRetained EarningsSales Commissions ExpenseAcc. Dep.-EquipmentSales Commissions PayableInsurance ExpenseSalesDepr. Expense-BuildingEquipmentSales Returns and AllowancesProperty Tax ExpenseDepr. Expense-EquipmentUtilities ExpenseUtilities Expense PayableInterest ExpenseProperty Taxes PayableAcc. dep.-BuildingInterest PayableInterest RevenueCommon StockMortgage Payable Due Next YearAccounts PayableBuildingPrepaid InsuranceAccounts ReceivableCashMerchandise InventoryMortgage PayableDividendsOffice Salaries Expense
Sales Commissions ExpenseProperty Tax ExpenseUtilities ExpenseInsurance ExpenseDepr. Expense-BuildingDividendsInterest RevenueOffice Salaries ExpenseEquipmentAccounts PayableCashCost of Goods SoldCommon StockMortgage Payable Due Next YearSales Salaries ExpenseAccounts ReceivablePrepaid InsuranceSalesSales Returns and AllowancesSales Commissions PayableRetained EarningsDepr. Expense-EquipmentProperty Taxes PayableAcc. Dep.-EquipmentAcc. dep.-BuildingUtilities Expense PayableInterest PayableBuildingMerchandise InventoryMortgage PayableInterest Expense

Total selling Expenses

Administrative Expenses
Retained EarningsInterest PayableAcc. dep.-BuildingProperty Tax ExpenseMortgage Payable Due Next YearAccounts PayableAcc. Dep.-EquipmentCashOffice Salaries ExpenseBuildingDepr. Expense-BuildingPrepaid InsuranceCost of Goods SoldEquipmentMerchandise InventoryAccounts ReceivableMortgage PayableCommon StockDepr. Expense-EquipmentSales Commissions ExpenseDividendsInsurance ExpenseInterest ExpenseProperty Taxes PayableUtilities ExpenseSales Returns and AllowancesInterest RevenueSales Commissions PayableSales Salaries ExpenseSalesUtilities Expense Payable $
Prepaid InsuranceSales Commissions ExpenseInterest PayableMortgage PayableMortgage Payable Due Next YearUtilities Expense PayableAccounts PayableSales Commissions PayableDepr. Expense-BuildingInsurance ExpenseAcc. Dep.-EquipmentAcc. dep.-BuildingProperty Taxes PayableAccounts ReceivableSales Salaries ExpenseCommon StockBuildingSales Returns and AllowancesRetained EarningsInterest RevenueInterest ExpenseMerchandise InventoryCashCost of Goods SoldDepr. Expense-EquipmentUtilities ExpenseDividendsEquipmentSalesOffice Salaries ExpenseProperty Tax Expense
Sales Commissions PayableInterest RevenueMortgage Payable Due Next YearSales Commissions ExpenseEquipmentInterest PayableProperty Taxes PayableUtilities Expense PayableDepr. Expense-EquipmentAcc. dep.-BuildingBuildingAccounts PayableInsurance ExpenseAcc. Dep.-EquipmentInterest ExpensePrepaid InsuranceAccounts ReceivableProperty Tax ExpenseCashOffice Salaries ExpenseSales Salaries ExpenseSalesMerchandise InventorySales Returns and AllowancesMortgage PayableCommon StockRetained EarningsCost of Goods SoldDepr. Expense-BuildingDividendsUtilities Expense
BuildingInsurance ExpenseUtilities ExpenseDepr. Expense-BuildingMerchandise InventoryPrepaid InsuranceMortgage PayableAccounts PayableAccounts ReceivableSales Commissions PayableDepr. Expense-EquipmentUtilities Expense PayableAcc. dep.-BuildingInterest RevenueInterest PayableSales Salaries ExpenseProperty Taxes PayableSales Commissions ExpenseInterest ExpenseCashCommon StockDividendsEquipmentOffice Salaries ExpenseSalesRetained EarningsCost of Goods SoldSales Returns and AllowancesProperty Tax ExpenseMortgage Payable Due Next YearAcc. Dep.-Equipment
Property Tax ExpenseDepr. Expense-BuildingCashBuildingUtilities Expense PayableSales Salaries ExpenseMerchandise InventoryRetained EarningsAcc. Dep.-EquipmentAcc. dep.-BuildingProperty Taxes PayableSales Commissions ExpenseInsurance ExpenseAccounts PayableAccounts ReceivableSalesInterest PayableSales Commissions PayablePrepaid InsuranceDividendsMortgage Payable Due Next YearMortgage PayableCommon StockCost of Goods SoldDepr. Expense-EquipmentOffice Salaries ExpenseSales Returns and AllowancesEquipmentInterest ExpenseUtilities ExpenseInterest Revenue

Total administrative Expenses

Total operating Expenses

Income from operations
Other revenues and gains
Sales Commissions ExpenseCashCommon StockProperty Taxes PayableEquipmentRetained EarningsSales Salaries ExpenseCost of Goods SoldDepr. Expense-BuildingDividendsMortgage PayableInsurance ExpenseSales Commissions PayablePrepaid InsuranceUtilities Expense PayableProperty Tax ExpenseInterest PayableMortgage Payable Due Next YearDepr. Expense-EquipmentInterest ExpenseMerchandise InventorySales Returns and AllowancesOffice Salaries ExpenseSalesInterest revenueAccounts PayableAcc. Dep.-EquipmentAccounts ReceivableUtilities ExpenseBuildingAcc. dep.-Building
Other Expenses and losses
EquipmentDividendsSales Commissions PayableInterest PayableInterest ExpenseUtilities ExpenseBuildingMortgage Payable Due Next YearAcc. dep.-BuildingAcc. Dep.-EquipmentInsurance ExpenseDepr. Expense-EquipmentPrepaid InsuranceInterest RevenueOffice Salaries ExpenseProperty Taxes PayableRetained EarningsSales Commissions ExpenseAccounts PayableUtilities Expense PayableDepr. Expense-BuildingSales Salaries ExpenseMerchandise InventorySalesSales Returns and AllowancesAccounts ReceivableCashMortgage PayableCommon StockProperty Tax ExpenseCost of Goods Sold


Net income $



MAINE DEPARTMENT STORE
Retained Earnings Statement
For the Year Ended December 31, 2008
CashInterest ExpenseSales Salaries ExpenseProperty Tax ExpenseInterest RevenueNet incomeProperty Taxes PayableAcc. Dep.-EquipmentDividendsCost of Goods SoldAccounts PayableSales Returns and AllowancesRetained Earnings, January 1Acc. dep.-BuildingUtilities Expense PayableUtilities ExpenseSalesMortgage PayableSales Commissions ExpenseOffice Salaries ExpenseCommon StockInsurance ExpenseBuildingSales Commissions PayableRetained Earnings, December 31Interest PayableMortgage Payable Due Next YearPrepaid InsuranceDepr. Expense-BuildingDepr. Expense-EquipmentAccounts ReceivableMerchandise InventoryEquipment $
Add: Sales Commissions ExpenseAccounts PayableAcc. Dep.-EquipmentInsurance ExpenseInterest ExpenseSales Returns and AllowancesCashInterest RevenueCommon StockDepr. Expense-BuildingAcc. dep.-BuildingEquipmentRetained Earnings, January 1Utilities Expense PayableUtilities ExpenseDepr. Expense-EquipmentOffice Salaries ExpenseProperty Tax ExpenseSales Salaries ExpenseBuildingMortgage Payable Due Next YearPrepaid InsuranceCost of Goods SoldSalesMortgage PayableNet incomeDividendsMerchandise InventoryRetained Earnings, December 31Interest PayableSales Commissions PayableProperty Taxes PayableAccounts Receivable


Less: Merchandise InventoryUtilities ExpenseAccounts ReceivableAcc. Dep.-EquipmentSales Returns and AllowancesDividendsCashMortgage Payable Due Next YearInterest PayableDepr. Expense-EquipmentInsurance ExpenseRetained Earnings, December 31Mortgage PayableSalesSales Commissions PayableSales Salaries ExpenseCost of Goods SoldAccounts PayableProperty Taxes PayableBuildingSales Commissions ExpenseDepr. Expense-BuildingEquipmentInterest ExpenseInterest RevenueOffice Salaries ExpenseProperty Tax ExpenseRetained Earnings, January 1Common StockNet incomeAcc. dep.-BuildingPrepaid InsuranceUtilities Expense Payable

Acc. dep.-BuildingDepr. Expense-EquipmentProperty Taxes PayableSales Commissions PayableSales Commissions ExpenseUtilities Expense PayableSalesDividendsMortgage PayableRetained Earnings, December 31EquipmentRetained Earnings, January 1Utilities ExpenseNet incomePrepaid InsuranceCommon StockOffice Salaries ExpenseProperty Tax ExpenseAcc. Dep.-EquipmentBuildingInterest PayableInterest RevenueCashMortgage Payable Due Next YearMerchandise InventorySales Returns and AllowancesAccounts PayableAccounts ReceivableSales Salaries ExpenseCost of Goods SoldDepr. Expense-BuildingInsurance ExpenseInterest Expense $



MAINE DEPARTMENT STORE
Balance Sheet
December 31, 2008
Assets
Current Assets
Property Taxes PayablePrepaid InsuranceMortgage PayableAcc. Dep.-EquipmentInterest PayableUtilities Expense PayableAccounts PayableDepr. Expense-BuildingDepr. Expense-EquipmentRetained EarningsBuildingMortgage Payable Due Next YearInterest ExpenseAcc. dep.-BuildingInterest RevenueSales Commissions ExpenseSales Returns and AllowancesEquipmentMerchandise InventorySales Salaries ExpenseAccounts ReceivableDividendsCommon StockCost of Goods SoldInsurance ExpenseProperty Tax ExpenseOffice Salaries ExpenseCashSales Commissions PayableSalesUtilities Expense $
Sales Returns and AllowancesBuildingRetained EarningsUtilities Expense PayableEquipmentInsurance ExpenseUtilities ExpenseProperty Tax ExpenseSalesCost of Goods SoldSales Commissions PayableAccounts ReceivableProperty Taxes PayableAcc. dep.-BuildingInterest PayableMerchandise InventoryAcc. Dep.-EquipmentMortgage Payable Due Next YearPrepaid InsuranceCashDepr. Expense-EquipmentMortgage PayableAccounts PayableCommon StockSales Salaries ExpenseDepr. Expense-BuildingSales Commissions ExpenseInterest RevenueDividendsInterest ExpenseOffice Salaries Expense
Prepaid InsuranceSales Returns and AllowancesSales Commissions PayableBuildingAccounts ReceivableSalesDepr. Expense-BuildingMortgage Payable Due Next YearOffice Salaries ExpenseCashEquipmentUtilities ExpenseInsurance ExpenseDividendsCost of Goods SoldInterest ExpenseProperty Taxes PayableMortgage PayableInterest RevenueSales Salaries ExpenseProperty Tax ExpenseCommon StockInterest PayableUtilities Expense PayableAcc. dep.-BuildingSales Commissions ExpenseMerchandise InventoryAccounts PayableAcc. Dep.-EquipmentRetained EarningsDepr. Expense-Equipment
Insurance ExpenseDepr. Expense-BuildingProperty Tax ExpenseMortgage PayableSales Commissions ExpenseInterest ExpenseSales Commissions PayableUtilities Expense PayableSales Returns and AllowancesCost of Goods SoldDividendsSales Salaries ExpenseMortgage Payable Due Next YearCommon StockAccounts PayableDepr. Expense-EquipmentInterest RevenueEquipmentRetained EarningsAcc. Dep.-EquipmentMerchandise InventoryOffice Salaries ExpenseSalesUtilities ExpensePrepaid InsuranceProperty Taxes PayableInterest PayableAcc. dep.-BuildingBuildingAccounts ReceivableCash

Total current assets
Property, plant and equipment
Cost of Goods SoldDepr. Expense-BuildingMerchandise InventorySales Commissions PayableCommon StockInterest RevenueUtilities Expense PayableDepr. Expense-EquipmentMortgage PayableRetained EarningsAcc. dep.-BuildingMortgage Payable Due Next YearAccounts PayablePrepaid InsuranceDividendsEquipmentAccounts ReceivableInsurance ExpenseSalesInterest ExpenseOffice Salaries ExpenseCashSales Salaries ExpenseSales Commissions ExpenseAcc. Dep.-EquipmentProperty Taxes PayableInterest PayableSales Returns and AllowancesUtilities ExpenseProperty Tax ExpenseBuilding $
Less: Sales Commissions PayableDepr. Expense-BuildingCommon StockSales Returns and AllowancesSales Commissions ExpenseUtilities Expense PayableSales Salaries ExpenseDepr. Expense-EquipmentAcc. Dep.-EquipmentProperty Taxes PayableAccounts PayableInterest ExpenseCost of Goods SoldPrepaid InsuranceMerchandise InventoryAccounts ReceivableBuildingAcc. Dep.-BuildingMortgage Payable Due Next YearDividendsCashMortgage PayableProperty Tax ExpenseUtilities ExpenseInterest PayableRetained EarningsEquipmentInsurance ExpenseInterest RevenueOffice Salaries ExpenseSales

Equipment
Less: Insurance ExpenseRetained EarningsProperty Taxes PayablePrepaid InsuranceAcc. Dep.-EquipmentMortgage Payable Due Next YearOffice Salaries ExpenseDepr. Expense-BuildingDividendsMerchandise InventoryCost of Goods SoldInterest PayableCashSales Returns and AllowancesAcc. dep.-BuildingBuildingDepr. Expense-EquipmentSales Salaries ExpenseAccounts ReceivableSales Commissions PayableAccounts PayableCommon StockMortgage PayableInterest ExpenseSalesSales Commissions ExpenseEquipmentInterest RevenueUtilities ExpenseProperty Tax ExpenseUtilities Expense Payable



Total assets $


Liabilities and Stockholders' Equity
Current liabilities
Depr. Expense-BuildingDividendsSales Commissions PayableBuildingRetained EarningsAccounts PayableUtilities Expense PayableCost of Goods SoldCashDepr. Expense-EquipmentProperty Taxes PayableInterest PayableSales Returns and AllowancesUtilities ExpensePrepaid InsuranceMerchandise InventoryMortgage Payable Due Next YearSalesSales Commissions ExpenseInterest RevenueProperty Tax ExpenseAccounts ReceivableEquipmentAcc. Dep.-EquipmentAcc. dep.-BuildingMortgage PayableInterest ExpenseCommon StockInsurance ExpenseOffice Salaries ExpenseSales Salaries Expense $
Merchandise InventoryOffice Salaries ExpenseUtilities Expense PayableDepr. Expense-EquipmentPrepaid InsuranceAccounts ReceivableRetained EarningsMortgage PayableSales Returns and AllowancesCommon StockCashUtilities ExpenseProperty Taxes PayableAcc. Dep.-EquipmentDividendsProperty Tax ExpenseDepr. Expense-BuildingAcc. dep.-BuildingSales Commissions ExpenseCost of Goods SoldEquipmentBuildingAccounts PayableInsurance ExpenseMortgage Payable Due Next YearInterest RevenueInterest ExpenseSales Salaries ExpenseSalesSales Commissions PayableInterest Payable
Mortgage PayableMerchandise InventoryBuildingInterest RevenueAcc. dep.-BuildingAccounts PayableSales Commissions PayableUtilities Expense PayableSales Commissions ExpenseCost of Goods SoldMortgage Payable Due Next YearProperty Taxes PayableCommon StockInterest ExpenseAccounts ReceivableRetained EarningsSales Returns and AllowancesAcc. Dep.-EquipmentPrepaid InsuranceProperty Tax ExpenseCashDepr. Expense-EquipmentDepr. Expense-BuildingDividendsEquipmentInsurance ExpenseOffice Salaries ExpenseSales Salaries ExpenseSalesUtilities ExpenseInterest Payable
Property Taxes PayableInterest RevenueInterest ExpenseAcc. dep.-BuildingUtilities ExpenseBuildingCommon StockAccounts PayableMortgage PayablePrepaid InsuranceAcc. Dep.-EquipmentCashMerchandise InventoryRetained EarningsAccounts ReceivableOffice Salaries ExpenseEquipmentSales Salaries ExpenseDepr. Expense-BuildingCost of Goods SoldDepr. Expense-EquipmentSales Commissions PayableDividendsSalesInsurance ExpenseSales Commissions ExpenseSales Returns and AllowancesProperty Tax ExpenseUtilities Expense PayableInterest PayableMortgage Payable Due Next Year
Insurance ExpenseRetained EarningsUtilities ExpenseBuildingCashProperty Tax ExpensePrepaid InsuranceCost of Goods SoldUtilities Expense PayableOffice Salaries ExpenseProperty Taxes PayableInterest ExpenseSalesInterest PayableInterest RevenueDepr. Expense-BuildingAccounts PayableSales Salaries ExpenseSales Commissions ExpenseMortgage PayableAccounts ReceivableAcc. Dep.-EquipmentMortgage Payable Due Next YearAcc. dep.-BuildingMerchandise InventoryCommon StockDepr. Expense-EquipmentSales Returns and AllowancesDividendsSales Commissions PayableEquipment
Interest PayableDividendsDepr. Expense-BuildingInsurance ExpenseMortgage Payable Due Next YearOffice Salaries ExpenseAccounts PayableProperty Tax ExpenseDepr. Expense-EquipmentEquipmentAcc. Dep.-EquipmentInterest ExpenseMerchandise InventoryInterest RevenueSales Salaries ExpenseAcc. dep.-BuildingUtilities ExpenseUtilities Expense PayableCashSalesSales Commissions PayableProperty Taxes PayableSales Commissions ExpenseBuildingPrepaid InsuranceCommon StockCost of Goods SoldRetained EarningsSales Returns and AllowancesAccounts ReceivableMortgage Payable

Total current liabilities
Long-term liabilities
Interest ExpenseProperty Taxes PayableMerchandise InventoryOffice Salaries ExpenseCost of Goods SoldSales Salaries ExpenseDepr. Expense-EquipmentAcc. Dep.-EquipmentInterest PayableUtilities Expense PayableInsurance ExpenseAcc. dep.-BuildingEquipmentCommon StockPrepaid InsuranceSales Returns and AllowancesDividendsMortgage Payable Due Next YearAccounts PayableInterest RevenueSalesBuildingSales Commissions ExpenseCashUtilities ExpenseAccounts ReceivableRetained EarningsProperty Tax ExpenseMortgage PayableDepr. Expense-BuildingSales Commissions Payable

Total liabilities
Stockholders' Equity
Sales Commissions PayableUtilities Expense PayableSales Salaries ExpenseProperty Taxes PayableUtilities ExpenseInterest PayablePrepaid InsuranceSales Commissions ExpenseDividendsDepr. Expense-BuildingProperty Tax ExpenseSalesInterest ExpenseSales Returns and AllowancesMortgage PayableCommon StockRetained EarningsMortgage Payable Due Next YearInterest RevenueOffice Salaries ExpenseCost of Goods SoldAccounts PayableCashMerchandise InventoryDepr. Expense-EquipmentAcc. Dep.-EquipmentAcc. dep.-BuildingBuildingAccounts ReceivableEquipmentInsurance Expense
Common StockCost of Goods SoldSalesAcc. Dep.-EquipmentCashInsurance ExpenseAcc. dep.-BuildingMortgage PayableInterest RevenueUtilities Expense PayableSales Returns and AllowancesDepr. Expense-EquipmentInterest ExpenseInterest PayableProperty Taxes PayableOffice Salaries ExpenseSales Salaries ExpenseBuildingMortgage Payable Due Next YearDividendsAccounts PayableEquipmentSales Commissions ExpenseProperty Tax ExpenseUtilities ExpenseRetained EarningsPrepaid InsuranceMerchandise InventoryAccounts ReceivableDepr. Expense-BuildingSales Commissions Payable

Total stockholders' equity

Total liabilities and stockholders' equity $








Journalize the adjusting entries that were made.
Date Description Debit Credit
Dec. 31 Depr. Expense-EquipmentDividendsUtilities ExpenseSalesSales Commissions PayableAccounts ReceivableEquipmentCashPrepaid InsuranceInterest ExpenseMortgage PayableCommon StockSales Commissions ExpenseRetained EarningsProperty Tax ExpenseSales Returns and AllowancesProperty Taxes PayableCost of Goods SoldInsurance ExpenseInterest RevenueSales Salaries ExpenseOffice Salaries ExpenseUtilities Expense PayableDepr. Expense-BuildingInterest PayableMortgage Payable Due Next YearAccounts PayableMerchandise InventoryAcc. Dep.-EquipmentAcc. dep.-BuildingBuilding $
Acc. Dep.-EquipmentCashSales Salaries ExpenseSales Returns and AllowancesInterest PayableInterest ExpenseUtilities Expense PayableCost of Goods SoldBuildingSalesAccounts PayableProperty Taxes PayableMortgage PayableCommon StockInsurance ExpenseDepr. Expense-EquipmentRetained EarningsPrepaid InsuranceSales Commissions ExpenseDividendsEquipmentProperty Tax ExpenseMerchandise InventoryInterest RevenueOffice Salaries ExpenseMortgage Payable Due Next YearUtilities ExpenseAcc. Dep.-BuildingDepr. Expense-BuildingAccounts ReceivableSales Commissions Payable $
(To adjust depreciation on building.)
Dec. 31 Accounts ReceivableInterest PayableCost of Goods SoldUtilities ExpenseCashProperty Tax ExpenseInterest RevenueDividendsMortgage Payable Due Next YearSalesRetained EarningsUtilities Expense PayableEquipmentAccounts PayableSales Salaries ExpenseAcc. Dep.-EquipmentAcc. dep.-BuildingSales Commissions ExpenseBuildingDepr. Expense-EquipmentSales Returns and AllowancesSales Commissions PayableMerchandise InventoryInsurance ExpenseDepr. Expense-BuildingInterest ExpenseProperty Taxes PayablePrepaid InsuranceMortgage PayableCommon StockOffice Salaries Expense $
Accounts ReceivableDividendsProperty Taxes PayableOffice Salaries ExpenseRetained EarningsProperty Tax ExpenseCost of Goods SoldAcc. Dep.-EquipmentBuildingPrepaid InsuranceInterest PayableInterest RevenueEquipmentInsurance ExpenseDepr. Expense-EquipmentUtilities Expense PayableMortgage PayableSales Salaries ExpenseCashAcc. dep.-BuildingInterest ExpenseDepr. Expense-BuildingSalesCommon StockMerchandise InventorySales Commissions ExpenseSales Returns and AllowancesSales Commissions PayableUtilities ExpenseMortgage Payable Due Next YearAccounts Payable $
(To adjust depreciation on equipment.)
Dec. 31 SalesDepr. Expense-EquipmentDepr. Expense-BuildingBuildingAccounts PayableAcc. Dep.-EquipmentCashMortgage PayableCommon StockInterest PayableInterest RevenueSales Commissions ExpenseUtilities ExpenseSales Returns and AllowancesAcc. dep.-BuildingPrepaid InsuranceDividendsProperty Tax ExpenseInsurance ExpenseMerchandise InventorySales Commissions PayableOffice Salaries ExpenseSales Salaries ExpenseUtilities Expense PayableEquipmentProperty Taxes PayableMortgage Payable Due Next YearAccounts ReceivableRetained EarningsCost of Goods SoldInterest Expense $
Sales Salaries ExpenseSales Returns and AllowancesAcc. dep.-BuildingSales Commissions ExpenseUtilities ExpenseMerchandise InventoryInsurance ExpenseInterest ExpenseEquipmentSalesProperty Tax ExpenseBuildingPrepaid InsuranceUtilities Expense PayableAccounts ReceivableDividendsMortgage Payable Due Next YearSales Commissions PayableDepr. Expense-BuildingProperty Taxes PayableInterest PayableAccounts PayableInterest RevenueAcc. Dep.-EquipmentCashMortgage PayableCommon StockOffice Salaries ExpenseRetained EarningsCost of Goods SoldDepr. Expense-Equipment $
(To adjust Insurance Expense.)
Dec. 31 Utilities Expense PayableCost of Goods SoldProperty Tax ExpenseInterest ExpenseSales Commissions PayableSales Salaries ExpenseUtilities ExpenseDepr. Expense-EquipmentInterest RevenueOffice Salaries ExpenseDepr. Expense-BuildingSalesDividendsAcc. Dep.-EquipmentEquipmentSales Commissions ExpensePrepaid InsuranceCashProperty Taxes PayableInsurance ExpenseInterest PayableSales Returns and AllowancesMortgage Payable Due Next YearRetained EarningsMerchandise InventoryAccounts PayableAcc. dep.-BuildingBuildingAccounts ReceivableMortgage PayableCommon Stock $
Acc. Dep.-EquipmentUtilities ExpenseAccounts PayableInterest PayableCost of Goods SoldAcc. dep.-BuildingInterest RevenueUtilities Expense PayableOffice Salaries ExpenseSales Commissions PayableDepr. Expense-BuildingSales Commissions ExpenseSalesProperty Tax ExpenseDepr. Expense-EquipmentProperty Taxes PayableAccounts ReceivableMortgage Payable Due Next YearBuildingPrepaid InsuranceDividendsMerchandise InventoryCashSales Returns and AllowancesMortgage PayableSales Salaries ExpenseCommon StockRetained EarningsEquipmentInsurance ExpenseInterest Expense $
(To adjust interest Expense.)
Dec. 31 EquipmentSales Returns and AllowancesUtilities ExpenseInsurance ExpenseMortgage PayableCashSales Commissions PayableSales Salaries ExpenseProperty Tax ExpenseInterest RevenueSalesUtilities Expense PayableRetained EarningsProperty Taxes PayableOffice Salaries ExpenseDepr. Expense-EquipmentBuildingDividendsInterest ExpenseCommon StockInterest PayableSales Commissions ExpenseMortgage Payable Due Next YearPrepaid InsuranceAccounts PayableCost of Goods SoldAcc. Dep.-EquipmentAcc. dep.-BuildingMerchandise InventoryAccounts ReceivableDepr. Expense-Building $
Office Salaries ExpenseUtilities Expense PayablePrepaid InsuranceAcc. dep.-BuildingMortgage Payable Due Next YearSales Commissions ExpenseInterest PayableInterest ExpenseSales Commissions PayableAcc. Dep.-EquipmentSales Salaries ExpenseInterest RevenueMerchandise InventoryCashProperty Taxes PayableSales Returns and AllowancesUtilities ExpenseDepr. Expense-EquipmentProperty Tax ExpenseAccounts PayableCost of Goods SoldDividendsCommon StockBuildingSalesRetained EarningsAccounts ReceivableMortgage PayableDepr. Expense-BuildingEquipmentInsurance Expense $
(To adjust property Tax Expense.)
Dec. 31 Mortgage Payable Due Next YearAccounts ReceivableUtilities Expense PayableAcc. dep.-BuildingAccounts PayableOffice Salaries ExpenseMerchandise InventoryAcc. Dep.-EquipmentBuildingPrepaid InsuranceRetained EarningsSalesSales Salaries ExpenseCost of Goods SoldSales Returns and AllowancesCashMortgage PayableCommon StockProperty Taxes PayableDepr. Expense-EquipmentUtilities ExpenseDividendsProperty Tax ExpenseInterest PayableEquipmentInsurance ExpenseInterest ExpenseInterest RevenueSales Commissions ExpenseDepr. Expense-BuildingSales Commissions Payable $
EquipmentSales Returns and AllowancesDepr. Expense-EquipmentPrepaid InsuranceMortgage Payable Due Next YearDividendsUtilities ExpenseUtilities Expense PayableMerchandise InventorySales Salaries ExpenseCost of Goods SoldInsurance ExpenseProperty Tax ExpenseMortgage PayableSales Commissions PayableAcc. Dep.-EquipmentDepr. Expense-BuildingBuildingProperty Taxes PayableAcc. dep.-BuildingAccounts ReceivableAccounts PayableCashOffice Salaries ExpenseInterest PayableInterest ExpenseInterest RevenueSalesSales Commissions ExpenseCommon StockRetained Earnings $
(To adjust sales Commissions Expense.)
Dec. 31 BuildingSales Commissions PayableSalesSales Commissions ExpenseSales Returns and AllowancesDividendsProperty Tax ExpenseDepr. Expense-EquipmentUtilities ExpenseDepr. Expense-BuildingSales Salaries ExpenseUtilities Expense PayableProperty Taxes PayableInterest PayableCost of Goods SoldMortgage Payable Due Next YearRetained EarningsEquipmentInterest ExpensePrepaid InsuranceAccounts PayableOffice Salaries ExpenseAcc. dep.-BuildingAccounts ReceivableInterest RevenueCommon StockAcc. Dep.-EquipmentMerchandise InventoryCashMortgage PayableInsurance Expense $
Sales Commissions ExpenseDepr. Expense-EquipmentSales Returns and AllowancesBuildingEquipmentUtilities ExpenseAccounts PayableMortgage PayableAcc. Dep.-EquipmentAcc. dep.-BuildingDividendsPrepaid InsuranceMerchandise InventorySales Salaries ExpenseAccounts ReceivableCashCommon StockRetained EarningsInsurance ExpenseUtilities Expense PayableCost of Goods SoldProperty Tax ExpenseInterest ExpenseSalesInterest RevenueDepr. Expense-BuildingSales Commissions PayableProperty Taxes PayableOffice Salaries ExpenseInterest PayableMortgage Payable Due Next Year $
(To adjust utilities Expense.)







Journalize the closing entries that are necessary. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)
Date Description/Account Debit Credit
Dec. 31 Mortgage Payable Due Next YearMerchandise InventoryDepr. Expense-EquipmentCashAccounts PayableCost of Goods SoldInsurance ExpenseCommon StockIncome SummarySales Salaries ExpenseRetained EarningsSales Returns and AllowancesInterest RevenueSales Commissions PayablePrepaid InsuranceInterest ExpenseInterest PayableUtilities ExpenseBuildingSales Commissions ExpenseAcc. Dep.-EquipmentProperty Tax ExpenseDepr. Expense-BuildingAccounts ReceivableMortgage PayableEquipmentOffice Salaries ExpenseSalesDividendsUtilities Expense PayableProperty Taxes PayableAcc. dep.-Building $
Sales Commissions ExpenseUtilities Expense PayableCost of Goods SoldMortgage Payable Due Next YearMerchandise InventoryDividendsSales Commissions PayableAccounts PayableProperty Taxes PayableIncome SummaryInterest PayableInterest RevenueInterest ExpenseAccounts ReceivableBuildingAcc. dep.-BuildingAcc. Dep.-EquipmentDepr. Expense-EquipmentEquipmentInsurance ExpensePrepaid InsuranceCashCommon StockMortgage PayableRetained EarningsDepr. Expense-BuildingOffice Salaries ExpenseSales Salaries ExpenseSalesSales Returns and AllowancesUtilities ExpenseProperty Tax Expense $
Acc. Dep.-EquipmentDepr. Expense-BuildingCost of Goods SoldMerchandise InventoryAcc. dep.-BuildingProperty Taxes PayableInterest PayableBuildingUtilities ExpenseDepr. Expense-EquipmentOffice Salaries ExpenseSales Commissions ExpenseMortgage Payable Due Next YearSales Salaries ExpenseSales Returns and AllowancesInterest RevenuePrepaid InsuranceIncome SummaryAccounts ReceivableAccounts PayableCashSalesProperty Tax ExpenseMortgage PayableCommon StockRetained EarningsEquipmentDividendsUtilities Expense PayableInsurance ExpenseInterest ExpenseSales Commissions Payable $
(To close revenue account.)
Dec. 31 BuildingAcc. dep.-BuildingSales Commissions PayableOffice Salaries ExpenseMortgage Payable Due Next YearCost of Goods SoldInterest ExpenseAcc. Dep.-EquipmentUtilities Expense PayablePrepaid InsuranceIncome SummaryMerchandise InventoryProperty Taxes PayableInterest PayableDepr. Expense-BuildingAccounts PayableInsurance ExpenseAccounts ReceivableProperty Tax ExpenseDividendsCashMortgage PayableCommon StockDepr. Expense-EquipmentRetained EarningsEquipmentInterest RevenueSales Salaries ExpenseSales Returns and AllowancesUtilities ExpenseSalesSales Commissions Expense $
Interest ExpenseMortgage Payable Due Next YearSales Salaries ExpenseAcc. Dep.-EquipmentIncome SummaryOffice Salaries ExpenseDepr. Expense-EquipmentSalesMortgage PayableUtilities ExpenseCashSales Commissions ExpenseSales Commissions PayableInsurance ExpenseAcc. dep.-BuildingProperty Taxes PayableDepr. Expense-BuildingCost of Goods SoldBuildingSales Returns and AllowancesInterest PayableUtilities Expense PayableProperty Tax ExpenseAccounts PayableInterest RevenueDividendsPrepaid InsuranceMerchandise InventoryAccounts ReceivableCommon StockRetained EarningsEquipment $
Utilities Expense PayableInterest RevenueRetained EarningsPrepaid InsuranceDividendsAccounts ReceivableMortgage PayableInsurance ExpenseMerchandise InventoryIncome SummaryOffice Salaries ExpenseSales Commissions PayableInterest PayableCashCost of Goods SoldSales Commissions ExpenseSales Returns and AllowancesDepr. Expense-BuildingUtilities ExpenseSales Salaries ExpenseProperty Tax ExpenseSalesCommon StockDepr. Expense-EquipmentProperty Taxes PayableMortgage Payable Due Next YearAccounts PayableAcc. Dep.-EquipmentInterest ExpenseAcc. dep.-BuildingBuildingEquipment $
Sales Commissions PayableSales Commissions ExpenseEquipmentCommon StockMortgage PayableBuildingUtilities Expense PayableDepr. Expense-BuildingPrepaid InsuranceProperty Taxes PayableRetained EarningsInterest PayableDepr. Expense-EquipmentMortgage Payable Due Next YearAccounts PayableCost of Goods SoldInsurance ExpenseAccounts ReceivableIncome SummaryAcc. Dep.-EquipmentAcc. dep.-BuildingMerchandise InventoryProperty Tax ExpenseCashInterest ExpenseInterest RevenueSales Salaries ExpenseSalesOffice Salaries ExpenseSales Returns and AllowancesUtilities ExpenseDividends $
Acc. Dep.-EquipmentPrepaid InsuranceOffice Salaries ExpenseSales Commissions PayableUtilities Expense PayableUtilities ExpenseMerchandise InventoryDepr. Expense-EquipmentInterest ExpenseInsurance ExpenseSalesAcc. dep.-BuildingMortgage Payable Due Next YearCashDepr. Expense-BuildingSales Returns and AllowancesEquipmentBuildingDividendsAccounts ReceivableInterest RevenueSales Salaries ExpenseMortgage PayableAccounts PayableCommon StockProperty Tax ExpenseCost of Goods SoldRetained EarningsIncome SummarySales Commissions ExpenseProperty Taxes PayableInterest Payable $
Sales Commissions ExpenseMerchandise InventoryInterest PayableMortgage PayableUtilities Expense PayableAccounts ReceivableMortgage Payable Due Next YearAcc. dep.-BuildingIncome SummarySales Salaries ExpenseInterest RevenueAccounts PayableProperty Tax ExpenseDepr. Expense-EquipmentRetained EarningsSales Commissions PayableCommon StockUtilities ExpenseSalesBuildingCashCost of Goods SoldDividendsDepr. Expense-BuildingPrepaid InsuranceProperty Taxes PayableAcc. Dep.-EquipmentEquipmentInsurance ExpenseInterest ExpenseOffice Salaries ExpenseSales Returns and Allowances $
Cost of Goods SoldOffice Salaries ExpenseInterest PayableUtilities Expense PayableInsurance ExpenseCashProperty Taxes PayableSalesSales Commissions PayableInterest RevenueDepr. Expense-BuildingSales Salaries ExpenseIncome SummaryCommon StockBuildingUtilities ExpensePrepaid InsuranceRetained EarningsSales Commissions ExpenseDepr. Expense-EquipmentDividendsAccounts PayableAccounts ReceivableMerchandise InventoryEquipmentMortgage PayableInterest ExpenseSales Returns and AllowancesProperty Tax ExpenseMortgage Payable Due Next YearAcc. Dep.-EquipmentAcc. dep.-Building $
Interest PayableAccounts ReceivableEquipmentIncome SummarySales Commissions PayableAcc. dep.-BuildingPrepaid InsuranceCommon StockSales Commissions ExpenseCashDepr. Expense-BuildingAccounts PayableOffice Salaries ExpenseMortgage PayableSales Returns and AllowancesRetained EarningsDividendsUtilities ExpenseInterest ExpenseProperty Taxes PayableCost of Goods SoldMortgage Payable Due Next YearSales Salaries ExpenseDepr. Expense-EquipmentInsurance ExpenseBuildingInterest RevenueUtilities Expense PayableSalesProperty Tax ExpenseAcc. Dep.-EquipmentMerchandise Inventory $
Property Tax ExpenseDepr. Expense-EquipmentAccounts PayableUtilities Expense PayableMortgage PayableEquipmentSales Commissions PayableCommon StockInsurance ExpenseAcc. Dep.-EquipmentRetained EarningsCashSales Salaries ExpenseInterest ExpenseProperty Taxes PayableInterest PayableInterest RevenueCost of Goods SoldAccounts ReceivableOffice Salaries ExpenseSales Returns and AllowancesUtilities ExpenseSalesIncome SummarySales Commissions ExpenseDepr. Expense-BuildingMortgage Payable Due Next YearMerchandise InventoryDividendsAcc. dep.-BuildingBuildingPrepaid Insurance $
Mortgage Payable Due Next YearMortgage PayableBuildingPrepaid InsuranceMerchandise InventoryUtilities ExpenseSales Commissions PayableProperty Taxes PayableCashRetained EarningsInterest PayableCommon StockCost of Goods SoldAccounts ReceivableAcc. dep.-BuildingDepr. Expense-BuildingDepr. Expense-EquipmentInterest RevenueInterest ExpenseAccounts PayableOffice Salaries ExpenseEquipmentSales Salaries ExpenseInsurance ExpenseAcc. Dep.-EquipmentProperty Tax ExpenseSalesSales Commissions ExpenseIncome SummarySales Returns and AllowancesDividendsUtilities Expense Payable $
CashAccounts ReceivableMortgage PayableSales Commissions ExpenseAccounts PayableCommon StockPrepaid InsuranceSales Commissions PayableDividendsUtilities ExpenseInsurance ExpenseCost of Goods SoldDepr. Expense-EquipmentRetained EarningsDepr. Expense-BuildingEquipmentInterest ExpenseAcc. dep.-BuildingUtilities Expense PayableInterest RevenueProperty Tax ExpenseOffice Salaries ExpenseSales Salaries ExpenseBuildingSales Returns and AllowancesAcc. Dep.-EquipmentSalesMerchandise InventoryIncome SummaryProperty Taxes PayableInterest PayableMortgage Payable Due Next Year $
Depr. Expense-BuildingAcc. Dep.-EquipmentAcc. dep.-BuildingSalesIncome SummaryCost of Goods SoldProperty Tax ExpenseAccounts PayablePrepaid InsuranceInterest RevenueBuildingOffice Salaries ExpenseDepr. Expense-EquipmentUtilities Expense PayableDividendsMerchandise InventoryAccounts ReceivableProperty Taxes PayableCashSales Commissions PayableMortgage PayableEquipmentCommon StockInterest PayableMortgage Payable Due Next YearSales Salaries ExpenseRetained EarningsSales Commissions ExpenseInsurance ExpenseInterest ExpenseSales Returns and AllowancesUtilities Expense $
(To close Expense accounts.)
Dec. 31 Interest PayableUtilities Expense PayablePrepaid InsuranceDepr. Expense-EquipmentAccounts PayableUtilities ExpenseSales Returns and AllowancesInterest RevenueSales Commissions ExpenseProperty Tax ExpenseBuildingAcc. dep.-BuildingDividendsMortgage PayableSales Commissions PayableEquipmentAcc. Dep.-EquipmentInsurance ExpenseMerchandise InventoryInterest ExpenseCashAccounts ReceivableCommon StockIncome SummaryOffice Salaries ExpenseRetained EarningsCost of Goods SoldDepr. Expense-BuildingSales Salaries ExpenseMortgage Payable Due Next YearSalesProperty Taxes Payable $
Property Taxes PayableSales Commissions PayableBuildingPrepaid InsuranceUtilities Expense PayableAcc. dep.-BuildingInsurance ExpenseMerchandise InventoryCost of Goods SoldInterest ExpenseDepr. Expense-BuildingSalesRetained EarningsProperty Tax ExpenseCommon StockCashMortgage Payable Due Next YearMortgage PayableSales Commissions ExpenseSales Returns and AllowancesSales Salaries ExpenseUtilities ExpenseIncome SummaryAccounts ReceivableDepr. Expense-EquipmentAcc. Dep.-EquipmentInterest PayableOffice Salaries ExpenseAccounts PayableDividendsEquipmentInterest Revenue $
(To close income summary.)
Dec. 31 Sales Salaries ExpenseDepr. Expense-BuildingDepr. Expense-EquipmentEquipmentInterest RevenueUtilities Expense PayableInsurance ExpenseInterest ExpenseSalesMerchandise InventoryDividendsMortgage Payable Due Next YearOffice Salaries ExpenseSales Commissions ExpenseCommon StockBuildingProperty Taxes PayableSales Returns and AllowancesSales Commissions PayableUtilities ExpenseProperty Tax ExpenseAccounts PayableIncome SummaryRetained EarningsInterest PayableAcc. Dep.-EquipmentAcc. dep.-BuildingPrepaid InsuranceAccounts ReceivableCashMortgage PayableCost of Goods Sold $
Interest RevenueOffice Salaries ExpenseIncome SummaryInsurance ExpenseDividendsSales Returns and AllowancesSales Salaries ExpenseUtilities Expense PayableAccounts PayableCommon StockSalesInterest ExpenseAcc. dep.-BuildingSales Commissions PayableSales Commissions ExpenseUtilities ExpenseMerchandise InventoryProperty Tax ExpenseDepr. Expense-EquipmentDepr. Expense-BuildingAcc. Dep.-EquipmentProperty Taxes PayableCost of Goods SoldInterest PayableMortgage Payable Due Next YearBuildingPrepaid InsuranceAccounts ReceivableEquipmentCashMortgage PayableRetained Earnings $
(To close dividends.)















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