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.

		Debit			Credit
Merchandise inventory	$	35,500
Prepaid selling expenses		6,700
Dividends		44,000
Sales				$	573,000
Sales returns and allowances		19,700
Sales discounts		6,100
Cost of goods sold		234,000
Sales salaries expense		59,000
Utilities expense		20,500
Selling expenses		41,500
Administrative expenses		116,000

Additional Information Accrued and unpaid sales salaries amount to $2,300. Prepaid selling expenses of $2,000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $32,000 of goods still available. (a) Use the above account balances along with the additional information, prepare the adjusting entries. (b) Use the above account balances along with the additional information, prepare the closing entries.