Taylor Department Store uses a periodic inventory system. The adjusted trial balance of Taylor Department Store at December 31, 2018, follows:

Requirements
1. Prepare Taylor Department Store's multi-step income statement for the year ended December 31, 2018. Assume ending Merchandise Inventory is $36,700.
2. Journalize Taylor Department Store's closing entries.

Transcribed Image Text:

TAYLOR DEPARTMENT STORE Adjusted Trial Balance December 31, 2018 Balance Debit Credit Account Title $ 7,900 Cash Accounts Receivable 85,300 37,600 Merchandise Inventory (beginning) Office Supplies 300 Furniture 83,000 $ 18,500 Accumulated Depreciation-Furniture Accounts Payable 28,500 Salaries Payable 2,900 Unearned Revenue 14,500 Notes Payable, long-term 32,000 20,000 Common Stock Retained Earnings 45,400 Dividends 89,000 Sales Revenue 380,800 Purchases 284,000 Purchase Returns and Allowances 110,000 Purchase Discounts 7,000 Freight In 100 42,900 Selling Expense Administrative Expense 26,300 Interest Expense 3,200 $ 659,600 $ 659,600 Total