On October 31, 2008, the balances of the accounts appearing in the ledger of Kavanaugh Company, a furniture wholesaler, are as follows:
|
Accumulated Dep.—Building |
$152,300 |
Notes Payable |
$ 120,000 |
|
Administrative Expenses |
326,500 |
Salaries Payable |
3,400 |
|
Building |
278,400 |
Sales |
1,567,700 |
|
Cash |
44,200 |
Sales Discounts |
90,000 |
|
Cost of Merchandise Sold |
940,000 |
Sales Returns and Allow. |
60,000 |
|
Interest Expense |
9,600 |
Sales Tax Payable |
24,500 |
|
Lillian Kavanaugh, Capital |
705,775 |
Selling Expenses |
620,000 |
|
Lillian Kavanaugh, Drawing |
39,750 |
Store Supplies |
22,900 |
|
Merchandise Inventory |
130,000 |
Store Supplies Exp. |
12,325 |
Prepare the October 31, 2008, closing entries for Kavanaugh Company.