Chapter 5, Problem S5B.16SE

Journalizing closing entries-periodic inventory system

Learning Objective 8 Appendix 58

D & T printing supplies’s accounting records include the following accounts at December 31, 2018.

Purchases	$ 185,200	Accumulated Depreciation-Building	$ 21, 000
Accounts Payable	7,700	Cash	18,100
Rent Expense	8,600	Sales Revenue	275,800
Building	42,800	Depreciation Expense-Building	4,700
Treat, Capital	85,400	Treat, Withdrawals	26,500
Merchandise Inventory, Beginning	119,000	Interest Expense	1,900
Notes Payable	11,300	Merchandise Inventory, Beginning	102,100
Purchases Discounts	2,900	Purchase Returns and allowances	20,700

Requirements

1. Journalize the required closing entries for D & T Printing Supplies assuming that D & T uses the periodic inventory system.
2. Determine the ending balance in the capital account.