int, up to gross profit for the month of May 2005 *P5...124 The following is an alphabetical list of The Water Tocadisted acement balances at the proper dig med end of the company's fiscal year on December 31, 2008 system Accounts payable 56,200 Inventory. Jan. 1.2008 $ 40,500 SOAP Accounts receivable 19,400 Mortgage payable 80 000 Accumulated amortization- Property tax expense 4800 building 51,800 Property tax payable 4,800 Accumulated amortization Purchase discounts 4,450 equipment 42.900 Purchase returns and allowances 6,400 Amortization expense 23,400 Purchases 441.600 Building 190.000 Salaries expense 122.500 Cash 22,000 Salaries payable 3,500 Equipment 110,000 Sales 623,000 Freight in 5,600 Sales discounts 6,200 H. Tse, capital 178,600 Sales returns and allowances 8.000 H. Tse, drawings 28.000 Supplies 400 Insurance expense 7,200 Supplies expense 2,000 Interest expense 5,400 Unearned sales revenue 2,300 Interest revenue 1,050 Utilities expense 18,000 Additional facts: 1. Merchandise inventory on December 31, 2008, is $72,600. 2. Of the mortgage payable. $7,300 is to be paid during the next year. Instructions (a) How do you know from the list of accounts that we uses a periodic inventory system? (b) Prepare a multiple-step income statement, a statement of owner's equity, and a classified bal- ance sheet (e) Prepare the closing journal entries. (d) Post the closing entries to the inventory and capital accounts. Check that the balances in these accounts are the same as the amounts on the balance sheet