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 $ 37,500 Prepaid selling expenses 7,100 Dividends 48,000 Sales $ 589,000 Sales returns and allowances 20,500 Sales discounts 6,500 Cost of goods sold 242,000 Sales salaries expense 63,000 Utilities expense 22,500 Selling expenses 43,500 Administrative expenses 120,000 Additional Information Accrued and unpaidThe 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$37,500Prepaid selling expenses7,100Dividends48,000Sales$589,000Sales returns and allowances20,500Sales discounts6,500Cost of goods sold242,000Sales salaries expense63,000Utilities expense22,500Selling expenses43,500Administrative expenses120,000

Additional Information Accrued and unpaid sales salaries amount to $1,300. Prepaid selling expenses of $2,400 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $33,200 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.