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Journalizing Closing Entries The following amounts appeared in the Income Statement
Chapter 20, Problem 20-4(choose chapter or problem)
Journalizing Closing Entries
The following amounts appeared in the Income Statement section of Sunset Surfwear’s worksheet.
Instructions In your working papers, record the closing entries for the year ended December 31. Start with general journal page 13.
Analyze Identify the effect of the closing entries on the Retained Earnings account.
Questions & Answers
QUESTION:
Journalizing Closing Entries
The following amounts appeared in the Income Statement section of Sunset Surfwear’s worksheet.
Instructions In your working papers, record the closing entries for the year ended December 31. Start with general journal page 13.
Analyze Identify the effect of the closing entries on the Retained Earnings account.
ANSWER:Step 1 of 3
An accounting cycle remains the same whether the business is merchandising company or a service provider. It does not change with the form of business arrangement such as a corporation, partnership, etc. Every business follows the accounting cycle to complete accounts, whether by the manual or computerized accounting system.