Using the information in QS 18, prepare the closing entries.
In QS 18
Merchandise inventory (January 1, 2014) $ 40,000
Kay Bondar, capital 102,000
Kay Bondar, withdrawals 65,000
Sales 450,000
Sales returns and allowances 27,000
Purchases 180,000
Purchase discounts 1,400
Transportation-in 14,000
Merchandise inventory (December 31, 2014) 22,000
Salaries expense 120,000
Depreciation expense 31,000