Jim Brown owns a small retail store called JB Sports. The entity prepares monthly financial statements. Below is a 10-column worksheet provided by the accountant of the business at the end of May 2022 before the financial statements for the month are prepared.

1. Based on the worksheet above, prepare the closing entries.
2. Illustrate and explain how profit or loss is closed if the organisaction structure of JB Sports is a company instead of small proprietorship?

Account Names Cash Accounts Receivable Prepaid insurance Supplies Equipment Acc. Dep.- Equipment Accounts Payable Unearned Revenue J. B. Capital Drawings Sales Revenue Wages Expense Miscellaneous Expense Insurance expense Supplies expense Depreciation expense Accrued wages Total Trial Balance Debit 5,750 6,500 5,000 2,750 15,000 2,500 3,570 250 41,320 Credit 3,000 2,750 750 20,820 14,000 41,320 Adjustments Debit 2,000 500 2,125 2,500 1,450 3,000 Credit 2,500 1,450 3,000 500 2,000 Adjusted Trial Balance Income Statement Debit Credit Debit Credit 2,125 5,750 8,500 2,500 1,300 15,000 2,500 5,695 250 2,500 1,450 3,000 6,000 2,750 250 20,820 16,500 2,125 11,575 11,575 18,450 18,450 5,695 250 2,500 1,450 3,000 12,895 3,605 16,500 16,500 Balance Sheet Debit Credit 5,750 8,500 2,500 1,300 15,000 2,500 16,500 35,550 16,500 35,550 6,000 2,750 250 20,820 2,125 31,945 3,605 35,550