Accounting for Merchandising Operations

Big Box Store is located in midtown Madison. 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, 2019, the following accounts appeared in two of its trial balances.

Instructions

  1. Prepare a multiple-step income statement, and owner's equity statement, and a classified balance sheet. Notes payable are due in 2022
  2. Journalize the adjusting entries that were made
  3. Journalize the closing entries that are necessary.

Solution

a.
Big Box Store
Income Statement (Multi-Step)
For the Year Ended November 30, 2019
Big Box Store
Owner's Equity Statement
For the Year Ended November 30, 2019

Big Box Store
Balance Sheet
November 30, 2019

 

b.
Big Box Store
Adjusting Journal Entries

 

c.
Big Box Store
Closing Journal Entries
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