The account balances in the ledger of the Dindorf Company on January 31 (the end of its fiscal year), before adjustments, were as follows:

The data for the adjustments are
1. Cost of merchandise sold, $302,990.
2. Depreciation on store equipment, $12,750.
3. Supplies inventory, January 31, $5,210. (Purchases of supplies during the year were debited to the Supplies Inventory account.)
4. Expired insurance, $4,660.
5. Interest accrued on notes payable, $3,730.
6. Sales salaries earned but not paid to employees, $3,575.
7. Interest earned on savings accounts, but not recorded, $390.
Required:
a. Set up T accounts with the balances given above.
b. Journalize and post adjusting entries, adding other T accounts as necessary.
c. Journalize and post closing entries.
d. Prepare an income statement for the fiscal year and a fiscal year-end balance sheet.

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Debit Balances Credit Balances Cash and equivalents Accounts receivable Merchandise inventory Store equipment Supplies inventory Prepaid insurance Selling expense Sales salaries Miscellaneous general expenses31,000 Sales discounts Interest expense Social Security tax expense9,600 s 119,115 Accumulated depreciation 162,500 700,680 Accounts payable 215,000 Notes payable on store equipment S 37,300 118,180 143,000 300,000 122,375 716,935 15,475 Common stock 38,250 Retained earnings 24,900 Sales revenues 105,750 6,220 9,300 3 Total $1,437,790 Total $1,437,790