1.	Journalize the closing entries at December 31. 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 Chip, Capital, whose balance should agree with the amount reported on the balance sheet.
2.	Prepare the company's multi-step income statement, statement of owner's equity, and balance sheet in report form for year ended December 31, 2016. Note: King Chip doesn't separate its operating expenses as either selling or administrative and Chip made no contributions during the year.
3.	Compute the gross profit percentage for 2016.

Data table King Chip Company uses a perpetual inventory system. The adjusted trial balance of King Chip Company follows: (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Journalize the closing entries at December 31. Post to the Income Summary account as an accuracy statement. Also post to Chip, Capital, whose balance should agree with the amount reported on the balance sheet. Begin by journalizing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the Start by closing revenues. Do not close the expenses or contra-revenue accounts; this will be done in the next step. Data table King Chip Company uses a perpetual inventory system. The adjusted trial balance of King Chip Company follows: (Click the icon to view the adjusted trial balance.) Read the requirements. Requirement 1. Journalize the closing entries at December 31. Post to the Income Summary account as an accuracy statement. Also post to Chip, Capital, whose balance should agree with the amount reported on the balance sheet. Begin by journalizing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the Start by closing revenues. Do not close the expenses or contra-revenue accounts; this will be done in the next step