291 Chapter 5 Accounting for Retail Business Cash Asset EMPLATE $ 275,000 6,590,000 4,100,000 32,000 13,000 45.000 Accumulated Depreciation-daid) Appendix 2 PR 5-10B Periodic inventory accounts, multiple-step income statement, closing entries et income On June 30, 2049, the balances of the accounts appearing in the ledger of Simkins Company are $1,208,000 as follows: $125,000 Dividends Accounts Receivable asset 340,000 Sales Inventory, July 1, 2018 415,000 Purchases Estimated Returns Inventory, Purchases Returns and Allowances July 1, 2018 25,000 Purchases Discounts Office Supplies 9,000 V Freight in Prepaid Insurance 18,000 Sales Salaries Expense 580,000 Land 300,000 V Advertising Expense 315,000 Store Equipment 550,000V Delivery Expense 18,000 Accumulated Depreciation - 1. Depreciation Expense- Store Equipment divid 190,000 Store Equipment 12.000 250,000 Miscellaneous Selling Expense 28,000 Office Salaries Expense 375,000 Office Equipment 110,000 Rent Expense 43,000 Accounts Payable C. 85,000 Insurance Expense 17,000 Customer Refunds Payable CD 30,000 V Office Supplies Expense 5,000 Salaries Payable-lob 9,000 Depreciation Expense- Uneamed Rent 6,000 Y Office Equipment 4,000 Notes Payable - Liob 50,000 V Miscellaneous Administrative Expense 16,000 Common Stock - Stick holder caudy 300,000 Rent Revenue 32,500 Retained Earnings 520,000 V Interest Expense 2,500 Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 2049. The inventory as of June 30, 20Y9, was $508,000. The estimated cost of customer retu inventory for June 30, 2099, is estimated to increase to $33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2089. 4. What would be the net income if the perpetual inventory system had been used