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Flounder Warehouse Store has an August 31 fiscal year end and uses a perpetual inventory system. An alphabetical list of its account balances at August 31, 2021, follows: All accounts have normal balances. Accounts payable Accounts receivable Accumulated depreciation-equipment $29,500 20,000 26,880 Cash Cost of goods sold Depreciation expense Equipment Freight out Insurance expense Interest expense Interest receivable 12,500 565,500 6,720 67,200 5,100 3,000 2,000 290 Interest revenue Merchandise inventory Notes payable Notes receivable Rent expense Sales Sales discounts Sales returns and allowances Supplies expense Unearned revenue V. Flounder, capital V. Flounder, drawings $910 57,000 31,820 32,000 16,000 703,000 3,800 14,100 5,500 5,900 72,900 60,200 Additional information: 1. All adjustments have been recorded and posted except for the inventory adjustment. According to the inventory count, the company has $54,000 of merchandise on hand. 2. Last year Flounder Warehouse Store had a gross profit margin of 20% and a profit margin of 10%. Prepare the closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Debit Credit Date Account Titles and Explanation Aug. 31 x (To close income statement accounts with credit balances.) Aug. 31 X X X X X X X (To close income statement accounts with debit balances.) Aug. 314 x (To close Income Summary account.) Aug. 31 (To close drawings account.) Post above entries in the Income Summary account. (Post entries in the order of journal entries presented in the previous part.) Income Summary x

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