Periodic Inventory Accounts, Multiple-Step Income Statement, Closing Entries On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Cash $125,000 Purchases $4,100,000 340,000 Purchases Returns and Allowances 32,000 13,000 Accounts Receivable Merchandise Inventory, July 1, 2018 Office Supplies Prepaid Insurance 45,000 415,000 Purchases Discounts 9,000 Freight In 18,000 Sales Salaries Expense 300,000 Advertising Expense 580,000 Land 315,000 Store Equipment 550,000 Delivery Expense 18,000 Accumulated Depreciation-Store Equipment 12.000 Office Equipment 190,000 Depreciation Expense-Store Equipment 250,000 Miscellaneous Selling Expense 110,000 Office Salaries Expense 28,000 375,000 85,000 Rent Expense 43,000 20,000 Insurance Expense 17,000 Accumulated Depreciation-Office Equipment Accounts Payable Customer Refunds Payable Salaries Payable Unearned Rent Notes Payable Amy Gant, Capital 9,000 Office Supplies Expense 5,000 6,000 Depreciation Expense-Office Equipment 4,000 50,000 Miscellaneous Administrative Expense 16,000 705,000 Rent Revenue 32,500 Amy Gant, Drawing 275,000 Interest Expense 2,500 Sales 6,590,000 Required: 1. Does Simkins Company use a periodic inventory system or perpetual inventory system? Which account listed would not be used under both inventory systems? 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2049. The merchandise inventory as of June 30, 2089, was $541,000. Simkins Company Income Statement For the Year Ended June 30, 2019 Cost of merchandise sold: Cost of merchandise purchased: Expenses: Selling expenses: Total selling expenses Administrative expenses: Total administrative expenses Total operating expenses Other income and expenses 3. Prepare the closing entries for Simkins Company as of June 30, 2019 in the order as presented in the chapter. If an amount box does not require an entry, leave it blank. Account Debit Credit June 30 June 30 4. What would be the net income if the perpetual inventory system had been used