ACCT 2301 The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2011 (A+)

ACCT 2301 The following list includes selected permanent accounts and all of the temporary accounts from the December 31, 2011, unadjusted trial balance of Deacon Co., a business owned by Julie Deacon. Deacon Co. uses a perpetual inventory system.

Debit Credit

Merchandise inventory $28,000

Prepaid selling expenses 5,000

Dividends 2,200

Sales $429,000

Sales returns and allowances 16,500

Sales discounts 4,000

Cost of goods sold 211,000

Sales salaries expense 47,000

Utilities expense 14,000

Selling expenses 35,000

Administrative expenses 95,000

Additional Information

Accrued sales salaries amount to $1,600. Prepaid selling expenses of $2,000 have expired. A physical count of year-end merchandise inventory shows $27,450 of goods still available.

Required:

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

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

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