Maine Department Store is located near the Village Shopping Mall. At the end of

Question

Maine Department Store is located near the Village Shopping Mall. At the end of the company's fiscal year on December 31, 2012, the following accounts appeared in two of its trial balances.

Unadjusted Adjusted / Unadjusted Adjusted
Accounts Payable $79,300 / $79,300
Interest Payable NA / $8,000
Accounts Receivable 50,300 / 50,300
Interest Revenue $4,000 / 4,000
Accumulated Depr. - Building 42,100 / 52,500
Merchandise Inventory 75,000 / 75,000
Accumulated Depr. - Equipment 29,600 / 42,900
Mortgage Payable 80,000 / 80,000
Building 190,000 / 190,000
Office Salaries Expense 32,000 / 32,000
Cash 23,800 / 23,800
Prepaid Insurance 9,600 / 2,400
B. Maine, Capital 176,600 / 176,600
Property Tax Expense NA / 4,800
Cost of Goods Sold 412,700 / 412,700
Property Taxes Payable NA / 4,800
Depr. Expense - Building NA / 10,400
Sales Salaries Expense 76,000 / 76,000
Depr. Expense- Equipment NA / 13,300
Sales 628,000 / 628,000
B. Maine, Drawing 28,000 / 28,000
Sales Commissions Expense 10,200 / 14,500
Equipment 110,000 / 110,000
Sales Commissions Payable NA / 4,300
Insurance Expense NA / 7,200
Sales Returns and Allowances 8,000 / 8,000
Interest Expense 3,000 / 11,000
Utilities Expense 11,000 / 12,000
Utilities Expense Payable NA / 1,000

Prepare a multiple-step income statement, an owner's equity statement, and a classified balance sheet. $20,000 of the mortgage payable is due for payment next year. (List amounts from largest to smallest e.g. 10, 5, 3, 2. If amounts are the same, list alphabetically. For the Balance Sheet, list assets in order of liquidity and liabilities from largest to smallest e.g. 10, 5, 3, 2.)
MAINE DEPARTMENT STORE


What I have so far... please let me know what I have right/wrong.
Also need help on blanks.
(___ = no answer / not sure what to put)
*Numbers I filled in


A) Income Statement
For the Year Ended December 31, 2012
Sales Revenues
______ (I put SALES here) $ 628,000 *
Less: _____ (I put SALES RETURN AND ALLOWANCES) $ 8,000 *
Net sales _____ $ 620,000 *
_____ (I put COST OF GOODS SOLD) $ 412,700 *
Gross profit $ 207,300 *

Operating expenses (What I put)
Sales salaries expense $76,000 *
Office salaries expense $32,000 *
Sales comm. expense $14,500 *
Depr. expenses - Equipment $13,300 *
Utilities expense $12,000 *
Depr. expense - Building $10,400 *
Insurance expense $7,200 *
Property tax expense $4,800 *
_________
Total operating expenses 170,200 *

Income from operations 37,100 *
Other revenues and gains
_____ (I put INTEREST REVENUE) 4,000 *
Other expenses and losses
_____ (I put INTEREST EXPENSES) 11,000 *
Net income
$ ______ ( I put $30,100)


B) MAINE DEPARTMENT STORE
Owner's Equity Statement
For the Year Ended December 31, 2012
_____ (I put B. MAINE, CAPITAL, JAN. 1)
$ 176,600 *
Add: ____ (I put INVESTMENTS)
$ _____
Less: _____ (I put DRAWINGS)
$ 28,000 *
_______ (I put B. MAINE, CAPITAL, DEC. 31)


C) MAINE DEPARTMENT STORE
Balance Sheet
December 31, 2012
Current Assets
____ (I put CASH) $23,800 *
____ (I put ACCOUNTS RECEIVABLE) $50,300 *
____ ??
____ ??

Total current assets
Property, plant and equipment
_____ (I put BUILDINGS) $ ____
Less: ____ (I put Acc. Dep. - BUILDING) $ ____

Equipment $ ______
Less: ____ (I put Acc. Dep. - EQUIPMENT) $ _____
Total assets $ _______


Liabilities and Owner's Equity
Current liabilities
____ (MORTGAGE PAYABLE) $ 80,000 *
____ (ACCOUNTS PAYABLE) $ 79,300 *
____ (INTEREST PAYABLE) $8,000 *
____ (PROPERTY TAX PAYABLE) $ 4,800 *
____ (SALES COMM. PAYABLE) $ 4,300 *
____ (UTILITIES EXPENSE PAYABLE) $ 1,000 *
Total current liabilities $ _____

Long-term liabilities
_____ (MORTGAGE PAYABLE) $ _____
Total liabilities $ _____

Owner's Equity
______ (B. MAINE, CAPITAL) $ _____
Total liabilities and owner's equity
$ ______




D) Journalize the adjusting entries that were made.
Date Description/Account - Debit / Credit
Dec. 31

(To adjust depreciation on building.)
Dec. 31

(To adjust depreciation on equipment.)
Dec. 31

(To adjust insurance expense.)
Dec. 31

(To adjust interest expense.)
Dec. 31

(To adjust property tax expense.)
Dec. 31

(To adjust sales commissions expense.)
Dec. 31

(To adjust utilities expense.)





Journalize the closing entries that are necessary. (For multiple debit/credit entries, list amounts from largest to smallest e.g. 10, 5, 3, 2.)
Date Description/Account - Debit / Credit
Dec. 31
____ (COST OF GOODS)
____ (INTEREST REVENUE)
____ (INCOME SUMMARY)
(To close revenue account.)

Dec. 31
____ (INCOME SUMMARY)
(then there is 11 slots to fill in from largest to smallest amount)
(To close expense accounts.)

Dec. 31
____ (INCOME SUMMARY)
____ (B. MAINE, CAPITAL)
(To close net income to capital.)

Dec. 31
____ (B. MAINE, CAPITAL)
____ (B. MAINE, DRAWING)
(To close drawings to capital.)

Explanation / Answer

100000 67890 56890 45300 45555

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