Question 4: Closing Entries (13 marks) The income statement columns of Swanson Company's year-end worksheet are as follows: Sales Sales Returns and Allowances Accounts Receivable Cost of Goods Sold Freight out Advertising Expense Accounts Payable Rent Expense Office Supplies Store Salaries Expense Utilities Expense Amortization Expense Merchandise Inventory Sargent, Capital Sargent, Drawings $600,000 30,000 120,000 475,000 4,000 8,000 25,000 32,000 1,800 63,000 12,000 5,000 31,000 121,000 6,000 Instructions Prepare the end of the period closing entries for the Swanson. OMIT Explanations. (9 marks) Debit Credit B) What is the closing Capital Balance for Sargent? 4 marks Question 5: Perpetual Inventory: Journal Entries (26 marks) The following are transactions for Chandler Fashions for the month of June. June 2 June 7 June 8 June 9 Purchased 3,000 items of inventory under terms 1/10, n/60 and FOB shipping point from Flower Manufacturing. The merchandise had a cost of $12,000 Returned defective merchandise to Flower Manufacturing with invoice price of $4,000. Paid the freight charges on the purchase from Flower Manufacturing in cash for $200. Sold merchandise to Trendy Store on account for $10,000 with terms 2/15, 1/60 FOB shipping point. Cost of the merchandise sold was $6,000. Paid Flower Manufacturing the balance on account. Granted sales allowance of $1,000 to Trendy Store for defective merchandise. Collected balance owing from Trendy Store. Purchased 500 items of inventory, terms 1/15, n/30, FOB destination from Sparkle Co. The merchandise had a cost $2,000. Paid for the merchandise from Sparkle Co. June 10 June 12 June 23 June 27 June 30 Instructions Using a perpetual inventory system, prepare the journal entries to record the transactions OMIT Explanations. Debit Credit Date