Nautical Dream Boat Supply uses the periodic inventory method. The adjusted trial balance of Nautical Dream Boat Supply at December 31, 2016, follows:

Requirements
1. Journalize the required closing entries at December 31, 2016. Assume ending Merchandise Inventory is $53,300.
2. Set up T-accounts for Income Summary; Retained Earnings; and Dividends. Post the closing entries to the T-accounts, and calculate their ending balances.
3. How much was Nautical Dreams net income or net loss?

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NAUTICAL DREAM BOAT SUPPLY Adjusted Trial Balance December 31, 2016 Balance Credit Account Title Cash Accounts Receivable Merchandise Inventory (beginning) Office Supplies Equipment Accumulated Depreciation- Equipment Accounts Payabie Salaries Payable Notes Payable, long-term Common Stock Retained Earnings Dividends Sales Revenue Sales Returns and Allowances Sales Discounts Interest Revenue Purchases Purchase Returns and Allowances Purchase Discounts Selling Expense Administrative Expense Total Debit 5 3,700 15,700 44,700 8,800 59,900 $ 19,900 12,000 1,000 11,900 24,000 27,500 60 700 330,000 1,900 2,100 3,200 274,600 94,200 8,000 38,700 20,900 $531,700 531,700