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Preparing Closing Entries A portion of the work sheet for Wilderness Rentals for the
Chapter 10, Problem 10-4(choose chapter or problem)
Preparing Closing Entries
A portion of the work sheet for Wilderness Rentals for the period ended December 31 follows.
Instructions Using the information from the worksheet, prepare the journal entries to close the temporary accounts.
1. Record the closing entry for the revenue account.
2. Record the closing entry for the expense accounts.
3. Record the closing entry for the Income Summary account.
4. Record the closing entry for the withdrawals account.
Questions & Answers
QUESTION:
Preparing Closing Entries
A portion of the work sheet for Wilderness Rentals for the period ended December 31 follows.
Instructions Using the information from the worksheet, prepare the journal entries to close the temporary accounts.
1. Record the closing entry for the revenue account.
2. Record the closing entry for the expense accounts.
3. Record the closing entry for the Income Summary account.
4. Record the closing entry for the withdrawals account.
Step 1 of 2
Closing entry refers to those journal entries that are made at the end of a financial year. It takes the data collected from the temporary accounts and puts it on the permanent accounts. It also shifts the balance of the income statement to retained earnings.