Required:

1. Set up T accounts with the balances given above.

2. Journalize and post adjusting entries, adding other T accounts as necessary.

3. Journalize and post closing entries.

4. Prepare an income statement for the year, Statement of Retained Earnings and a Statement of Financial Position as of February 28, 2019.

FAMILY-MART FAMILY-Mart was a retail store. Its account balances on February 28, 2019 (the end of its scal year), before adjustments, were as shown below: Debit balances Credit balances Cash $ 88,860 Accumulated depreciation $ 11,420 Accounts receivable 139,430 on store equrpment Merchandise inventory 903,130 Notes payable 88,500 Store equipment 70,970 Accounts payable 88,970 Supplies inventory 17,480 Common stock 100,000 Prepaid insurance 12,430 Retained earnings 33,500 Selling expense 10,880 Sales 1,000,700 Sales salaries 47,140 Misc. general expense 18,930 Sales discounts 3,340 Interest expense 7,100 Social security tax 3,400 expense Total $1,323,090 Total $1,323,090 The data for the adjustments are: 1. Cost of merchandise sold, $805,783. 2. Store equipment depreciation for the year, $7,097. 3. Supplies inventory, February 28, $3,877. {Purchases of supplies during the year were debited to the Supplies Inventory account.) 4. Expired insurance, $7,125. 5. The note payable was at an interest rate of 9 percent, payable monthly. It had been outstanding throughout the year. 6. Sales salaries earned but not paid to employees, $2,340. 7. The statement sent by the bankI adjusted for checks outstanding, showed a balance of $88,1 10. The difference represented bank service charges