The account balances in the ledger of the Dindorf Company on January 31 (at the end of its fiscal year), before adjustments, were as follows:

Debit Balances Credit Balances

Cash and cash equivalents $119,115 $37,300

Accumulated depreciation on store equipment

Accounts receivable 162,500

Accounts payable 118,180

Merchandise inventory 700,680

Notes payable 143,000

Store equipment 215,000

Common stock 300,000

Supplies inventory 15,475

Retained earnings 122,375

Prepaid insurance 38,250

Sales revenues 716,935

Selling expense 24,900

Sales salaries 105,750

Miscellaneous general expenses 31,000

Sales discounts 6,220

Interest expense 9,300

Social Security tax expense 9,600

Total $1,437,790Total Total $1,437,790

The data for the adjustments are:

1. Cost of merchandise sold, $302,990.

2. Depreciation on store equipment, $12,750.

3. Supplies inventory, January 31, $5,210.(Purchases of supplies during the year were debited to the Supplies Inventory account.)

4. Expired insurance, $4,660.

5. Interest accrued on notes payable, $3,730.

6. Sales salaries earned but not paid to employees, $3,575.

7. Interest earned on savings accounts, but not recorded, $390.

Required:

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

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

c. Journalize and post closing entries.

d. create an income statement for the fiscal year and a fiscal year-end balance sheet.