The following list includes some permanent accounts and all of the temporary accounts from the December 31, 2005, unadjusted trial balance of Deacon Co., a business owned by Julie Deacon. Use these account balances along with the additional information to journalize

(a) adjusting entries and

(b) closing entries. Deacon Co. uses a perpetual inventory system. jh4

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Debit Credit Merchandise inventory $ 28,000 Prepaid selling expenses 5,000 Dividends 2,200 Sales $429,000 Sales returns and allowances 16,500 Sales discounts 4,000 Cost of goods sold 211,000 Sales salaries expense 47,000 Utilities expense Selling expenses 14,000 35,000 Administrative expenses 95,000 Additional Information Accrued sales salaries amount to $1,600. Prepaid selling expenses of $2,000 have expired. A physi- cal count of year-end merchandise inventory shows $27,450 of goods still available.