Based on the data presented in Exercise 5-8, journalize the closing entries.

Data from Exercise 5-8:

On December 31, 2012, the balances of the accounts appearing in the ledger of Warm Place Furnishings Company, a furniture wholesaler, are as follows:

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Administrative Expenses Building Capital Stock $ 250,000 Office Supplies 1,025,000 Retained Earnings 150,000 Salaries Payable $ 20,000 591,000 6,000 3,000,000 40,000 160,000 450,000 65,000 Cash Cost of Merchandise Sold Dividends Interest Expense Merchandise Inventory Notes Payable 1,700,000 Sales Discounts 50,000 Sales Returns and Allowances 30,000 Selling Expenses 260,000 Store Supplies 400,000