Maurice Tutor
$15/per page/Negotiable
Tarp Department Store is located in midtown Platteville. During the past several years, net income has been declining because of suburban shopping centers.At the end of the company’s fiscal year on November 30, 2010, the following accounts appeared in two of its trial balances.
| Â |
Unadjusted |
Adjusted |
 |
Unadjusted |
Adjusted |
|
Accounts Payable |
$ 25,200 |
$ 25,200 |
Interest Revenue |
$ 8,000 |
$ 8,000 |
|
Accounts Receivable |
30,500 |
30,500 |
Merchandise Inventory |
29,000 |
29,000 |
|
Accumulated Depr.—Delivery Equip. |
10,000 |
15,000 |
Notes Payable |
37,000 |
37,000 |
|
Accumulated Depr.—Store Equip. |
24,000 |
32,000 |
Prepaid Insurance |
10,500 |
3,500 |
|
Cash |
6,000 |
6,000 |
Property Tax Expense |
2,800 |
|
|
J.Tarp, Capital |
101,700 |
101,700 |
Property Taxes Payable |
2,800 |
|
|
Cost of Goods Sold |
507,000 |
507,000 |
Rent Expense |
15,000 |
15,000 |
|
Delivery Expense |
6,500 |
6,500 |
Salaries Expense |
96,000 |
96,000 |
|
Delivery Equipment |
46,000 |
46,000 |
Sales |
680,000 |
680,000 |
|
Depr. Expense—Delivery Equip. |
 |
5,000 |
Sales Commissions Expense |
6,500 |
11,200 |
|
Depr. Expense—Store Equip. |
 |
8,000 |
Sales Commissions Payable |
4,700 |
|
|
J.Tarp, Drawing |
10,000 |
10,000 |
Sales Returns and Allowances |
8,000 |
8,000 |
|
Insurance Expense |
 |
7,000 |
Store Equip. |
100,000 |
100,000 |
|
Interest Expense |
6400 |
6,400 |
Utilities Expense |
8,500 |
8,500 |
Instructions
(a) Prepare a multiple-step income statement, an owner’s equity statement, and a classified balance sheet. Notes payable are due in 2013.
(b) Journalize the adjusting entries that were made.
(c) Journalize the closing entries that are necessary.