I need help with question #3 please

- Journalize and post closing entries. Thank you!

Case-4-2 Save-Mart* Save-Mart was a retail store. Its account balances on February 28 (the end of its fiscal year), before adjust- ments, were as shown below. Debit Balances Cash $ 88,860 127,430 Accounts receivable 903,130 Merchandise inventory Store equipment Supplies inventory 70,970 17,480 Prepaid insurance 12,430 Selling expense 10,880 Sales salaries 47,140 Miscellaneous general expense 18,930 Sales discounts 3,340 Interest expense 7,100 3,400 Social Security tax expense Total $1,311,090 The data for the adjustments are 1. Cost of merchandise sold, $604,783. 2. Store equipment had a useful life of seven years. (All equipment was less than seven years old.) 3. Supplies inventory, February 28, $3,877. (Pur- chases of supplies during the year were debited to the Supplies Inventory account.) 4. Expired insurance, $7,125. 5. The note payable was at an interest rate of 9 per- cent, payable monthly. It had been outstanding throughout the year. 6. Sales salaries earned but not paid to employees, $2,340. Credit Balances Accumulated depreciation on store equipment $ 11,420 Notes payable 88,500 Accounts payable 88,970 Common stock 100,000 Retained earnings 33,500 988,700 Sales Total $1,311,090 7. The statement sent by the bank, adjusted for checks outstanding, showed a balance of $88,110. The dif- ference represented bank service charges. Questions 1. Set up T accounts with the balances given above. 2. Journalize and post adjusting entries, adding other T accounts as necessary. 3. Journalize and post closing entries. 4. Prepare an income statement for the year and a bal- ance sheet as of February 28