Please provide the complete answers for requirements 3 and 4 only. Thank you INMANAC CASE NO. 2SAVE-MARTSave-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year).before adjustments, were as shown below:Debit balancesCredit balancesS 88,860 Accumulated depreciation on127,430 store equipment903,130 | Notes payable70,970 Accounts payable17.480 Common stock12,430 Retained earningsSI1,420CashAccounts receivableMerchandise inventoryStore equipmentSupplies inventoryPrepaid insuranceSelling expenseSales salariesMisc. general expenseSales discountsInterest expenseSocial security tax expenseTotal88,50088,970100,00033,500988,70010,880 Sales47,14018,9303,3407,1003,400S1311,090 Total$1,311,090The data for the adjustments are:1. Cost of merchandise sold, S604,783.2. Store cquipment depreciation for the year, $7,097.3. Supplies inventory, February 28, $3,877. (Purchases of supplies during the year were debitedto the Supplies Inventory account.)4. Expired insurance, $7,125.5. The note payable was at an interest rate of 9 percent, payable monthly. It had beenoutstanding throughout the year.6. Sales salaries earned but not paid to employees, $2,340.7. The statement sent by the bank, adjusted for checks outstanding, showed a balance ofS88,110. The difference represented bank service charges.Required:1. Set up Taccounts with the balances given above.2. Journalize and post adjusting entries, adding other T accounts as necessary.3. Journalize and post closing entries,4. Prepare an income statement for the year and a balance sheet as of February 28.Source: decounting Test and Canes (9 edtion) by RN Anthomy, JS Reece. JH Herenstein. Chicago: Irwin, 1994.

Hi, since you have asked for 3rd and 4th subparts we are solving only 3rd and 4th subparts. But for…

Save-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year), before adjustments, were as shown below: Debit balances Credit balances Cash Accounts receivable Merchandise inventory Store equipment Supplies inventory Prepaid insurance Selling expense Sales salaries Mise. general expense Sales discounts S 88,860 Accumulated depreciation on 127,430 store equipment 903,130 Notes payable 70,970 Accounts payable 17,480 Common stock 12,430 Retaincd earnings SI1,420 88,500 88,970 100,000 33,500 10,880 Sales 988,700 47,140 18,930 3,340