A partial work sheet for McKnight Music Store is presented here. The merchandise inventory at the beginning of the fiscal period was $ 48,473. W. J. McKnight, the owner, withdrew $ 40,000 during the year.

Required
1. Prepare an income statement.
2. Journalize the closingentries.

McKnight Music Store Work Sheet For Year Ended December 31, 20- INCOME STATEMENT ACCOUNT NAME CREDIT 24 Seles 315,483.00 23Sales Returns and Allowances 2Sales Discounts 4.348.00 1,817.00 27 Interest nccme 28 Purchases 29 Purchases Returns and Allowances 625.00 185,272.00 1,547.00 $0 Freight In 31Wages Expense 33 Commissions Expense 34 Supplies Expense 35 Interest Expense 36 | noome Summary 37Insurance Expense 30Depreciation Expense Buiding 39 Depreciation Expense Equpment 9,173.00 40615.00 10840.00 8 220.00 1,826.00 1,258.00 48473.00 48,850.00 4220.00 4,500.00 32318600306.00 42 Net Income 43619.00 356 806.00 366805.00 Sheet SheetSheets