King Cornelius Company uses a perpetual inventory system. The adjusted trial balance of King Cornelius Company follows:

Requirements
1. Prepare the company’s multi-step income statement, statement of retained earnings, and balance sheet in report form for year ended December 31, 2024. Note: King Cornelius doesn’t separate its operating expenses as either selling or administrative.
2. Journalize the closing entries at December 31, 2024. Post to the Income Summary account as an accuracy check on net income. Recall that the credit balance closed out of Income Summary should equal net income as computed on the income statement.
Also post to Retained Earnings, whose balance should agree with the amount reported on the balance sheet.
3. Compute the gross profit percentage for 2024. 

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Account Title Cash KING CORNELIUS COMPANY Adjusted Trial Balance December 31, 2024 Accounts Receivable Merchandise Inventory Estimated Returns Inventory Office Supplies Prepaid Rent Furniture Accumulated Depreciation-Furniture Accounts Payable Refunds Payable Salaries Payable Interest Payable Unearned Revenue Notes Payable, long-term Common Stock Retained Earnings Dividends Sales Revenue Sales Discounts Forfeited Cost of Goods Sold Salaries Expense Rent Expense Utilities Expense Depreciation Expense-Furniture Supplies Expense Interest Expense Total Balance Debit $ 5,600 37,100 20,000 5,800 1,300 1,000 26,500 48,000 81,000 72,700 7,700 5,800 2,700 2,200 2,900 $ 320,300 Credit $ 23,800 6,300 3,800 2,000 600 2,400 31,200 20,000 2,200 226,000 2,000 $ 320,300