ABC Company has the following merchandise account balances: Ending inventory $35,500; Sales return and Allowances $1,500; Sales Discounts $500; Purchase Returns and Allowances $3,000; Purchase Discount $770; Sales Revenue $200,000; Purchases $156,400; Beginning inventory $28,000; Freight-In $800. Prepare the entries to record the closing of these items to Income Summary using the periodic inventory system. Prepare an income statement through gross profit. Read following information to answer Question no. 6 and 7 Eva ltd. has three employees who are paid on an hourly basis. They receive a wage of 1 times the regular hourly rate for work in excess of 40 hours. Payroll data for the first week ended January 6, 2021, is given below. Employee Hours Worked Hourly Rate Union Fund Adam 43 $12.00 $10.00 Anna 45 14.00 13.00 Era 46 13.00 7.00 The applicable taxes include: FICA 7.65%; state income taxes 1.5%; state unemployment taxes 5.4%; federal unemployment 0.8%; and Federal Income Tax. All employees are married. Adam claims 2 withholding allowances; Anna claims 5 allowances and Era claims 3 withholding allowances. (Federal Income tax table is given at the end of paper).