Prepare closing entries as of August 31

1.) Record the entry to close the income statement accounts with credit balances.

2.) Record the entry to close the income statement accounts with debit balances.

3.) Record the entry to close income summary.

4.) Record the entry to close the withdrawals account.

Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 40,800 40,920 $ 24,900 19,100 8,500 225,000 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space Office supplies expense Totals 2,230 12,500 75,000 32,700 8,500 1,600 12,500 29,900 3,500 350 $269,000 $269,000 Beginning merchandise inventory was $25,300. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $92,700 2,800 4,300 4,900 Required: Prepare closing entries as of August 31 (the perpetual Inventory system is used)