Chapter 4, Problem 19E

(a)

To determine

Closing Entries: Closing entries are those journal entries which are passed to transfer the balances of temporary accounts to the permanent accounts. These are passed at the end of the accounting period, to transfer the final balance.

Rules for closing entries:

• Debit the account: All temporary accounts with credit balances.
• Credit the account: All temporary accounts with debit balances

To prepare: Closing entries.

(b)

To determine

Reversing Entries: Reversing entries are passed to reverse the effect of Adjusting entries passed at the end of previous period. These entries are passed in the beginning of the period.

To prepare: reversing entries.

(c)

To determine

To prepare: (a) Closing entries, (b) reversing entries, (c) T-Accounts, (d) entries to record collection and payment and (e) posting entries to temporary accounts.

(d)

To determine

To prepare: (a) Closing entries, (b) reversing entries, (c) T-Accounts, (d) entries to record collection and payment and (e) posting entries to temporary accounts.

(e)

To determine

To prepare: (a) Closing entries, (b) reversing entries, (c) T-Accounts, (d) entries to record collection and payment and (e) posting entries to temporary accounts.