Reference no: EM132498747

The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system.

Debit Credit

Merchandise inventory$34,500

Prepaid selling expenses 6,500

K. Emiko, Withdrawals 42,000

Sales $565,000Sales returns and allowances 19,300

Sales discounts 5,900

Cost of goods sold 230,000

Sales salaries expense 57,000

Utilities expense 19,500

Selling expenses 40,500

Administrative expenses 114,000

Additional Information

Accrued and unpaid sales salaries amount to $2,100. Prepaid selling expenses of $3,900 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $31,400 of goods still available.

Question 1(a) Use the above account balances along with the additional information, prepare the adjusting entries.

Question 1(b) Use the above account balances along with the additional information, prepare the closing entries.