Thrifty Department Store uses a periodic inventory system. The adjusted trial balance of Thrifty Department Store at December 31, 2025, follows: 

Requirements 

1. Prepare Thrifty Department Store’s multi-step income statement for the year ended December 31, 2025. Assume ending Merchandise Inventory is $36,500. 

2. Journalize Thrifty Department Store’s closing entries.

Transcribed Image Text:

Account Title Cash THRIFTY DEPARTMENT STORE Adjusted Trial Balance December 31, 2025 Accounts Receivable Merchandise Inventory (beginning) Supplies Furniture Accumulated Depreciation Furniture Accounts Payable Salaries Payable Unearned Revenue Notes Payable, long-term Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Sales Discounts Purchases Purchase Returns and Allowances Purchase Discounts Freight In Selling Expenses Administrative Expenses Interest Expense Total $ Debit Balance 7,700 84,900 37,300 700 81,000 88,700 6,400 4,300 290,000 700 42,300 26,800 3,300 $ 674,100 Credit $ 18,100 29,100 2,100 14,300 38,000 60,000 1,500 395,000 109,000 7,000 $ 674,100