There are four steps in making closing entries for a merchandising business: STEP 1. Close the revenue accounts and the other accounts that appear on the income statement and that have credit balances (all temporary or nominal accounts with credit balances) into Income Summary. STEP 2. Close the expense accounts and the other accounts appearing on the income statement that have debit balances (all temporary or nominal accounts with debit balances) into Income Summary. STEP 3. Close the Income Summary account into the Capital account, transferring the net income or loss to the Capital account. STEP 4. Close the Drawing account into the Capital account. From the below T-Accounts for Mary Company, journalize the closing entries dated March 31. If an amount box does not require an entry, leave it blank. Bal. Bal. Clo. Cash 101 1,500 Truck 150 30,000 Mary, Capital 301 375 Bal. Clo. Bal. 19,585 710 19,920 Bal. Bal. Accounts Receivable 105 700 Accum. Deprec. - Truck 151 Bal. Mary, Drawing 305 375 12,000 Bal. Clo. Supplies 110 120 Accounts Payable Bal. Income Summary 2,165 Clo. Bal. 201 350 400 2,875 0

There are four steps in making closing entries for a merchandising business: STEP 1. Close the revenue accounts and the other accounts that appear on the income statement and that have credit balances (all temporary or nominal accounts with credt balances) into income Summary. STEP 2. Cose the expense accounts and the other accounts appearing on the income statement that have debit balances (all temporary or nominal accounts with debit balances) into lncome Summary. STEP 3. Close the income Summary account into the Capital atcount, transferring the net income or loss to the Capital account. StEP 4, Close the Drareing account into the Capital account. From the below T-Accounts for Mary Company, joumalize the closing entries dated March 31. \begin{tabular}{l|r|r|} \hline March 31 & 350 & 2,875 \\ \hline Mary, Capital & 301 \\ \hline March 31 Mary, Capital the income Summary account into the Capital account. \\ \hline Mary, Drawing Close the Drawing account into the Capital account. & 301 \\ \hline \end{tabular}