On October 31, 2010, the balances of the accounts appearing in the ledger of Triple Creek Company are as follows — Does use periodic perpetual inventory system Explain

On October 31, 2010, the balances of the accounts appearing in the ledger of Triple Creek Company are as follows:

Instructions

1. Does Triple Creek Company use a periodic or perpetual inventory system? Explain.

2. Prepare a multiple-step income statement for Triple Creek Company for the year ended October 31, 2010. The merchandise inventory as of October 31, 2010, was $94,100.

3. Prepare the closing entries for Triple Creek Company as of October 31, 2010.