On December 31, 2014, the balances of the accounts appearing in the ledger of Wyman Company are as follows:

Instructions
1. Does Wyman Company use a periodic or perpetual inventory system? Explain.
2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2014. The merchandise inventory as of December 31, 2014, was $305,000.
3. Prepare the closing entries for Wyman Company as of December 31, 2014.
4. What would be the net income if the perpetual inventory system had beenused?

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13,500 Sales Returns and Allowances 72,000 Sales Discounts S46,000 29,000 2,650,000 93,000 37,000 48,000 300,000 45,000 9,000 Accounts Receivable Merchandise Inventory Purchases Purchases Returns and Allowances January 1, 2014 257,000 2 3,000 Purchases Discounts 4,500 150,000 270,000 Freight In Sales Salaries Expense Advertising Expense Delivery Expense Land Accumulated Depreciation- 55,900 Depreciation Expense- 78,500 Store Equipment 6,000 12,000 175,000 28,000 3,000 2,000 Accumulated Depreciation- Miscellaneous Selling Expense Office Salaries Expense Rent Expense Insurance Expense Office Supplies Expense 16,000 Accounts Payable Salaries Payable Unearned Rent 27,800 3,000 8,300 50,000 Depreciation Expense- 150,000 Office Equipment Capital Stock Retained Earnings Dividends 1,500 430,500 Miscellaneous Administrative Expn 3,500 7,000 2,000 25,000 Rent Revenue 3,355,000 Interest Expense