The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko. Emiko Co. uses a perpetual inventory system.

DebitCreditMerchandise inventory$31,000Prepaid selling expenses5,800K. Emiko, Withdrawals35,000Sales$537,000Sales returns and allowances17,900Sales discounts5,200Cost of goods sold216,000Sales salaries expense50,000Utilities expense16,000Selling expenses37,000Administrative expenses107,000

Additional Information

Accrued and unpaid sales salaries amount to $1,400. Prepaid selling expenses of $3,200 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $29,300 of goods still available.

(a)Use the aboveaccount balances along with the additional information, prepare the adjusting entries.

(b)Use the aboveaccount balances along with the additional information, prepare the closing entries.