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.

Account Names	Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	5,750				5,750				5,750
Accounts Receivable	6,500		2,000		8,500				8,500
Prepaid insurance	5,000			2,500	2,500				2,500
Supplies	2,750			1,450	1,300				1,300
Equipment	15,000				15,000				15,000
Acc. Dep. - Equipment		3,000		3,000		6,000				6,000
Accounts Payable		2,750				2,750				2,750
Unearned Revenue		750	500			250				250
J. B. Capital		20,820				20,820				20,820
Drawings	2,500				2,500				2,500
Sales Revenue		14,000		500 2,000		16,500		16,500
Wages Expense	3,570		2,125		5,695		5,695

Required

1. Based on the worksheet above, prepare the closing entries. (4 marks)
2. Illustrate and explain how profit or loss is closed if the organisaction structure of JB Sports is a company instead of small proprietorship? (3 mark)