JOURNALIZE AND POST CLOSING ENTRIES

Save-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year), before adjustments, were as shown below: The data for the adjustments are: 1. Cost of merchandise sold, $604,783. 2. Store equipment depreciation for the year, $7,097. 3. Supplies inventory, February 28,$3,877. (Purchases of supplies during the year were debited to the Supplies Inventory account.) 4. Expired insurance, $7,125. 5. The note payable was at an interest rate of 9 percent, payable monthly. It had been outstanding throughout the year. 6. Sales salaries earned but not paid to employees, $2,340. 7. The statement sent by the bank, adjusted for checks outstanding, showed a balance of $88,110. The difference represented bank service charges