Question

The following is an alphabetical list of Blue Spruce’s Bakery’s adjusted account balances at the end of the company’s fiscal year on November 30, 2021:

Accounts payable		$32,710		Merchandise inventory		$34,360
Accounts receivable		13,670		Mortgage payable		106,000
Accumulated depreciation—building		61,200		Prepaid insurance		4,500
Accumulated depreciation—equipment		19,880		Property tax expense		3,500
Building		175,000		Purchases		627,700
B. Hachey, capital		104,480		Purchase discounts		6,300
B. Hachey, drawings		12,000		Purchase returns and allowances		13,315
Cash		20,700		Rent revenue		3,400
Depreciation expense		14,900		Salaries expense		121,600
Equipment		57,000		Salaries payable		8,500
Freight in		5,110		Sales		872,000
Freight out		8,200		Sales discounts		8,300
Insurance expense		9,000		Sales returns and allowances		9,845
Interest expense		5,700		Unearned revenue		3,000
Land		79,000		Utilities expense		20,700

1.Prepare a multiple-step income statement for the November 30, 2021, year end

2.Prepare a statement of owner’s equity for the November 30, 2021, year end.

3.Prepare a classified balance sheet for the November 30, 2021, year end

4. Prepare the closing journal entries.

5.Post closing entries to the Merchandise Inventory and capital accounts. Check that the balances in these accounts are the same as the amounts on the balance sheet.

Additional information:
1.		Blue Spruce’s Bakery uses a periodic inventory system.
2.		Of the mortgage payable, $9,200 is due on March 31, 2022.
3.		A physical count determined that merchandise inventory on hand at November 30, 2021, was $37,370.
4.		The owner made no capital contributions during the year.

Answer 1