Chapter 5, Problem 5.13SE

Journalizing closing entries-periodic inventory system

D & L Printing Supplies’s accounting records include the following accounts at December 31, 2016.

Purchases	$ 189,600
Accumulated Depreciation-Building	$23,000
Accounts Payable	7,900
Cash	17,900
Rent Expense	9,000
Sales Revenue	295,100
Building	47,900
Depreciation Expense-Building	3,600
Common Stock	58,000
Dividends	27,100
Retained Earnings	21,800
Sales Discounts	4,300
Merchandise Inventory, Beginning	122,000
Interest Expense	2,200
Sales Returns and Allowances	17,500
Merchandise Inventory, Ending	99,500
Notes Payable	11,500
Purchase Returns and Allowances	21,200
Purchase Discounts	2,600

Requirements

1. Journalize the required closing entries for D & L Printing Supplies assuming that D & L uses the periodic inventory system.

2. Determine the ending balance in the Retained Earnings account.