Question - 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$365,000Administrative Expenses440,000Building810,000Cash78,000Cost of Merchandise Sold775,000Interest Expense6,000Peter Bronsky, Capital530,000Peter Bronsky, Drawing15,000Merchandise Inventory115,000Notes Payable100,000Sales1,437,000Sales Tax Payable4,500Selling Expenses160,000Store Supplies16,000Store Supplies Expense21,500
Prepare the July 31, 2016, closing entries for Serbian Interiors Company. Refer to the Chart of Accounts for exact wording of account titles.