BEFORE YOU GO ON$...$

DO IT

The trial balance of Yee Clothing Company at December $31$ shows Merchandise Inventory $$25,000$; J$.$ Yee,

Capital $$12,000$; Sales $$162,400$; Sales Retums and Allowances $$4,800$; Sales Discounts $$950$; Cost

of Goods Sold $$110,000$; Rental Revenue $$6,000$; Freight Out $$1,800$; Rent Expense $$8,800$; Salaries

Expense $$22,000$; and J$.$ Yee, Drawings $$3,600.$ Yee Clothing Company's statement of owner's equity for

the year showed profit of $$20,050$ and closing owner's capital of $$28,450.($a$)$ Prepare the closing entries for

the above accounts. $($b$)$ Create T accounts for Income Summary and J$.$ Yee, Capital, and post the closing

entries to these accounts.