Periodic inventory accounts, multiple-step income statement, closing entries On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash Accounts Receivable Inventory, July 1, 20Y8 $125,000 Dividends $275,000 340,000 Sales 6,590,000 415,000 Purchases 4,100,000 Estimated Returns Inventory, July 1, 20Y8 25,000 Purchases Returns and Allowances 32,000 Office Supplies 9,000 Purchases Discounts 13,000 Prepaid Insurance Land Store Equipment 18,000 Freight In 45,000 300,000 Sales Salaries Expense 580,000 550,000 Advertising Expense 315,000 Accumulated Depreciation-Store Equipment 190,000 Delivery Expense Office Equipment Accumulated Depreciation-Office Equipment 110,000 Miscellaneous Selling Expense 18,000 250,000 Depreciation Expense-Store Equipment 12,000 28,000 Accounts Payable Customer Refunds Payable Salaries Payable 85,000 Office Salaries Expense 375,000 30,000 Rent Expense 43,000 9,000 Insurance Expense 17,000 Unearned Rent Notes Payable Common Stock Retained Earnings 6,000 Office Supplies Expense 50,000 Depreciation Expense-Office Equipment 5,000 4,000 300,000 Miscellaneous Administrative Expense 520,000 Rent Revenue Interest Expense 16,000 32,500 2,500 1. Does Simkins Company use a periodic inventory system or perpetual inventory system? Which account listed would be used under one inventory system but not used under both inventory systems? 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The inventory as of June 30, 2009, was $508,000. The estimated cost of customer returns inventory for June 30, 2019 is estimated to increase to $33,000. Simkins Company Income Statement For the Year Ended June 30, 20Y9 $$ Cost of goods sold: Cost of merchandise purchased: $$ Operating Expenses: Selling expenses: $$ Total selling expenses Administrative expenses: S$ Total administrative expenses Total operating expenses Other revenue and expense: $$ $$ $$ $ $$ 3. Prepare the closing entries for Simkins Company as of June 30, 2009 in the order as presented in the chapter. If an amount box does not require an entry, leave it blank. Date Account Debit Credit June 30 June 30 4. What would be the net income if the perpetual inventory system had been used