Ocean Life Boat Supply uses the periodic inventory method. The adjusted trial balance of Ocean Life Boat Supply at December 31, 2024, follows:

Requirements
1. Journalize the required closing entries at December 31, 2024. Assume ending Merchandise Inventory is $53,100 and Estimated Returns Inventory is $800.
2. Set up T-accounts for Income Summary; Iver, Capital; and Iver, Withdrawals. Post the closing entries to the T-accounts, and calculate their ending balances.
3. How much was Ocean Life’s net income or net loss?

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OCEAN LIFE BOAT SUPPLY Adjusted Trial Balance December 31, 2024 Account Title Cash Accounts Receivable Merchandise Inventory (beginning) Office Supplies Equipment Accumulated Depreciation Equipment Accounts Payable Refunds Payable Salaries Payable Notes Payable, long-term Iver, Capital Iver, Withdrawals Sales Revenue Sales Discounts Forfeited Interest Revenue Purchases Purchase Returns and Allowances Purchase Discounts Selling Expense Administrative Expense Total Balance Debit $ 3,500 15,400 45,100 8,200 59,100 60,300 274,800 38,100 20,100 $ 524,600 Credit $ 19,900 11,000 1,100 1,700 11,300 37,700 334,250 750 3,700 95,100 8,100 $ 524,600