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

Requirements
1. Prepare Travis Department Stores multi-step income statement for the year ended December 31, 2016. Assume ending Merchandise Inventory is $36,500.
2. Journalize Travis Department Store€™s closing entries.

TRAVIS DEPARTMENT STORE Adjusted Trial Balance December 31, 2016 Balance Debit 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 Credit $ 7,700 85,200 37,500 800 89,000 $ 18,300 28,700 2,600 14,200 33,000 70,000 13,100 89,500 387,000 6,700 4,300 294,000 113,000 6,700 500 41,900 26,500 3,000 S686,600 686,600