Tilton Department Store uses a periodic inventory system. The adjusted trial balance of Tilton Department Store at December 31, 2016, follows:

Requirements
1. Prepare Tilton Department Stores multi-step income statement for the year ended December 31, 2016. Assume ending Merchandise Inventory is $36,700.
2. Journalize Tilton Department Stores closing entries.

TILTON DEPARTMENT STORE Adjusted Trial Balance December 31, 2016 Balance Debit Credit Account Title Cash Accounts Receivable Merchandise Inventory (beginning) Office Supplies Furniture Accumulated Depreciation Furniture Accounts Payable Salaries Payable Unearned Revenue Notes Payable, long-term Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Sales Discounts Purchases Purchase Returns and Allowances Purchase Discounts Freight In Selling Expense Administrative Expense Interest Expense Total $ 7,700 84,900 37,300 700 81,000 18,100 29,100 2,100 14,300 38,000 60,000 1,500 88,700 395,000 6,400 4,300 290,000 109,000 7,000 700 42,300 26,800 3,300 S674,100 674,100