Part 1. Prepare entries to close the temporary accounts of Small Shop, Incorporated (Exercise 5-8).

Part 2. Construct a Merchandise Inventory account in the form of a balance column account and enter the \(\$ 48,000\) beginning inventory of Exercise \(5-8\) as its December 31, 1989, balance. Then post to the account the portions of the store's closing entries that affect the account.