Taylor Department Store uses a periodic inventory system. The adjusted trial balance of Tsylor Department Store at December 31, 2018, fol ows ElB (Click the icon to viaw the adjusted trial balanco.) Read the requirements Requirement 1. Prepare Taylor Department Store's multi-step inoome statement for the year ended Decamber 31, 2018. Assume ending Merchandise Inventory i $38,500. (Use a minus sign or parentheses to show other expenses) Begin by calculating the gross profit, then complete the income statement in the next step Data Table Taylor Department Store Income Statement Year Ended December 31, 2018 Taylor Department Store Adjusted Trial Balance December 31, 2018 Balance Purchases Account Title Cash Accounts Receivable Merchandise Inventory (beginning) Omce Supplies Debit Credit Less: Purchase Returns and Allowances 7.800 85,200 37.600 700 82.000 Purchaze Discounts Net Purohases Plus: Freight In 18,800 28,800 2,900 14,200 32,000 54.900 Less: Ending Merohandise Inve Accounts Payable Salaries Payable Unearned Revenue Notes Payable, long-term Taylor, Capital Taylor, Withdrawals Sales Revenue Cost of Goods Sold Gross Profit 89.000 393,000 294,000 Purchase Returns and Allowances Purchsse Discounts Freight In Selling Expense Admin strative Expense Interast Expanse Total 117,000 6,100 Net Income (Loss) Requirement 2. Journalize Taylor Department Store's closing entries. (Record debits first then oredits. Select the explanation on the last line of the journal entry table.) Start by closing revenues and any other temporary contra-accounts with credit balances 700 41.800 20.000 2,900 S 667,500 S 667,500 Date Accounts and Explanation Debit Credit Dec. 31 PrintDone Clos. (1) Close expenses and any other temporary contra-accounts with debit accounts for the period Date Accounts and Explanation Debit Credit Dec. 31 Clos. (2)