McClelland Hardware Store's accounting records (partial) carried the following accounts at December 31, 2014:

Required
For simplicity, all operating expenses have been summarized in the accounts Selling Expenses, and General and Administrative Expenses.
1. Journalize all of this company's closing entries at December 31, 2014. The company uses the perpetual inventory system.
2. Set up T-accounts for the Income Summary account and the J. McClelland, Capital account. Post to these accounts and calculate their ending balances. One year earlier, at December 31, 2013, the Capital balance was $108,000.

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$ 39,500 Selling Expenses. Accounts Receivable. Interest Revenue.. Accounts Payable. Other Expense. Cost of Goods Sold. I. McClelland, Withdrawals.. $ 351,000 2,040,400 12,000 220,500 1,400 Sales Revenue. 199,000 Interest Expense 64,500 Inventory. 840,200 General and Administrative 220,000 Expenses 168,000