Use the data for White Company in Problem 14-2B to complete the following requirements:

Required

Prepare closing entries as of March 31, 2008.

Problem 14-2B:

White Company’s adjusted trial balance on March 31, 2008, its fiscal year-end, follows.

On March 31, 2008, merchandise inventory was \($56,500.\)
Required
1. Calculate the company’s net sales for the year.
2. Calculate the company’s total cost of net purchases for the year.
3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

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Debit Credit Merchandise inventory, March 31, 2007 Other (noninventory) assets Total liabilities J. White, Capital J. White, Withdrawals Sales Sales discounts $ 37,500 202.600 $ 42.500 164,425 3,000 332,650 5,875 Sales returns and allowances 20,000 Purchases.. 138,500 Purchase discounts 2.950 Purchase returns and allowances 6,700 Transportation-in 5,750 Sales salaries expense 44.500 Rent expense-Selling space 16,000 Store supplies expense.. 3,850 Advertising expense.... 26,000 Office salaries expense 40,750 Rent expense-Office space 3,800 Office supplies expense 1,100 Totals $549,225 $549,225