D & L Printing Supplies’s accounting records include the following accounts at
December 31, 2016.
Purchases..............$ 189,600
Accounts Payable............ 7,900
Rent Expense............... 9,000
Building............... 47,900
Common Stock........... 58,000
Retained Earnings........... 21,800
Merchandise Inventory, Beginning ...... 122,000
Sales Returns and Allowances..... 17,500
Notes Payable............... 11,500
Purchase Discounts........... 2,600
Accumulated Depreciation—Building..... $ 23,000
Cash................... 17,900
Sales Revenue............... 295,100
Depreciation Expense—Building..... 3,600
Dividends............... 27,100
Sales Discounts........... 4,300
Interest Expense........... 2,200
Merchandise Inventory, Ending..... 99,500
Purchase Returns and Allowances..... 21,200
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.