Closing entries; net income on march 31, 2019, the balances of the accounts appearing in the ledger of racine furnishings company, a furniture wholesaler, are as follows: accumulated depreciation—building $300,000 merchandise inventory $392,000 administrative expenses 216,000 notes payable 100,000 building 1,000,000 office supplies 8,000 cash 70,000 salaries payable 3,200 cost of merchandise sold 1,520,000 sales 2,564,000 interest expense 4,000 selling expenses 286,000 kathy melman, capital 634,800 store supplies 36,000 kathy melman, drawing 70,000 journalize the closing entries in the order as presented in the chapter. for a compound transaction, if an amount box does not require an entry, leave it blank. mar. 31 sales cost of merchandise sold selling expenses administrative expenses mar. 31

The following selected circumstances relate to pending lawsuits for erismus, inc. erismus’s fiscal year ends on december 31. financial statements are issued in march 2019. erismus prepares its financial statements according to u.s. gaap. required: indicate the amount erismus would record as an asset, liability, or not accrued in the following circumstances. 1. erismus is defending against a lawsuit. erismus's management believes the company has a slightly worse than 50/50 chance of eventually prevailing in court, and that if it loses, the judgment will be $1,000,000. 2. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages could fall anywhere in the range of $2,000,000 to $4,000,000, with any damage in that range equally likely. 3. erismus is defending against a lawsuit. erismus's management believes it is probable that the company will lose in court. if it loses, management believes that damages will eventually be $5,000,000, with a present value of $3,500,000. 4. erismus is a plaintiff in a lawsuit. erismus's management believes it is probable that the company eventually will prevail in court, and that if it prevails, the judgment will be $1,000,000. 5. erismus is a plaintiff in a lawsuit. erismus’s management believes it is virtually certain that the company eventually will prevail in court, and that if it prevails, the judgment will be $500,000.