A.

MERCANTILE
CLOSING ENTRIES

TO CLOSE INCOME ACCOUNT:

Sales 52,000
Income Summary
Rent Expense 9,000
Advertising 3,200
Freight-out 1,000
Salaries and Wages 5,000
Insurance Expense 3,600
Light and Water 500
Travel Expense 1,000
Store Supplies Expense 1,000
Depreciation Expense-Store F&F 666.67
Depreciation Expense-Store Equip 466.67
Bad Debts Expense 1,458
Interest Expense 250
Postage stamps Used 80
Taxes and Licenses 500
Sales Return 3,400
Cost of Goods Sold 36,500
To close expense income Acct.

A. Mercantile, Capital 4,000

A. Mercantile, withdrawal 4,000
To close Withdrawal to Capital

A. Mercantile, capital 15,621.34

Income Summary 15,621.34
To close Income Summary to Capital
 A. MERCANTILE
POST – CLOSING TRIAL BALANCE

Debit Credit
Cash on Hand 24,000
Cash in Bank 40,100
Merchandise Inventory 42,000
Accounts Payable 16,000
Store Furniture & Fixture 48,000
Store Equipment 29,000
Bank Loan 50,000
Store Supplies 1,400
Postage Stamps 220
Accu. Dep. Store F&F 666.67
Accu. Dep. Store Equip. 466.67
Allow. For Doubtful Acct. 1,458
Interest Payable 250
Taxes and Licenses Payable 500
A. Mercantile, Capital 147,378.66
200,720 200,720