The adjusted trial balance of Harrison Trading Company at September 30, 2014, appears below. Harrison Trading Company uses the perpetual inventory system.

Required
1. Journalize Harrison Trading Company's closing entries.
2. Compute the gross margin percentage and the rate of inventory turnover for 2014. Inventory on hand at September 30, 2013, was $80,000. For 2013, Harrison Trading Company's gross margin percentage was 34.8 percent and the inventory turnover rate was 3.9 times. Does the two-year trend in these ratios suggest improvement or deterioration in profitability?

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Adjusted Trial Balance Account Title Debit Credit $ 28,000 Cash Accounts receivable 18,000 84,000 Inventory Supplies Building 6,000 560,000 $ 392,000 Accumulated amortization-building Land 140,000 22,000 Accounts payable Salary payable 4,800 Unearned sales revenue 3,200 Note payable, long-term B. Harrison, capital B. Harrison, withdrawals 160,000 141,800 110,000 710,000 Sales revenue Sales returns 28,000 Cost of goods sold Selling expenses General expenses Interest expense 334,000 73,000 44,800 8,000 Total $1,433,800 $1,433,800