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King Celsey Company uses a perpetual inventory system. The adjusted trial balance of King Colsey Company follows: Click the icon lo viaw the adjusted trial balance.) Read the requirements. Requirement 1. Journalize the closing entries at December 31. Post to the income Summary account as an accuracy check on net income Fecal that the credit balance closed cut of thoorm Summary should equal net income as computed on the income statement. Aso post to Celsey, Captal, whose balance should apree with the amount ieperted on bhe batance ahet. Begin by journalizing the closing entries. (Recond debits frat, then credits. Solect the explanation on the last line of the journal entry table.) Start by closing revenues. Do not dote the expenses or contra-cevenue accounts; this wil bo done in the fext step. Requirements 1. Journalize the closing entries at December 31. Post to the Income Summary account as an accuracy check on net income. Recall that the credit balance closed out of Income Summary should equal net income as computed on the income statement. Also post to Celsey, Capital, whose balance should agree with the amount reported on the balance sheet. 2. Prepare the company's multi-step income statement, statement of owner's equity, and balance sheet in report form for year ended December 31, 2016. Note: King Celsey doesn't separate its operating expenses as either selling or administrative and Celsey made no contributions during the year. King Celsey Company Adjusted Trial Balance December 31, 2016 Balance Account Title Cash Accounts Receivable Merchandise Inventory Office Supplies Prepaid Rent Furniture Accumulated Depreciation-Furniture Accounts Payable Salaries Payable Interest Payable Unearned Revenue Notes Payable, long-term Celsey, Capital Celsey, Withdrawals Sales Revenue Sales Returns and Allowances Sales Discounts Debit Credit $4,400 38,400 27,100 1,600 1,500 26,900 $22,400 6,500 1,700 800 2,200 21,000 15,300 49,000 266,000 5,000 12,000 Data table

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