Problem
On July 31, 2016, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows:
|
Accumulated Depreciation-Building
|
$365,000
|
|
Administrative Expenses
|
440,000
|
|
Building
|
810,000
|
|
Cash
|
78,000
|
|
Cost of Merchandise Sold
|
775,000
|
|
Interest Expense
|
6,000
|
|
Peter Bronsky, Capital
|
530,000
|
|
Peter Bronsky, Drawing
|
15,000
|
|
Merchandise Inventory
|
115,000
|
|
Notes Payable
|
100,000
|
|
Sales
|
1,437,000
|
|
Sales Tax Payable
|
4,500
|
|
Selling Expenses
|
160,000
|
|
Store Supplies
|
16,000
|
|
Store Supplies Expense
|
21,500
|
Prepare the July 31, 2016, closing entries for Serbian Interiors Company. Refer to the Chart of Accounts for exact wording of account titles.