a. Explanation Closing entries: Closing entries are prepared at the end of the accounting period in order to nullify the effect of amounts in the temporary accounts and to transfer their amounts to permanent accounts. Trial balance : A trial balance can be defined as a bookkeeping worksheet wherein the balances of the ledgers of a company are brought together into the debit column and the credit column. A trial balance is prepared by a company periodically, generally at the end of an accounting period. It is usually prepared to make sure that the entries in the bookkeeping system of a company are correct and true. Prepare the closing entries as shown below. Date Particulars L/F Debit ($) Credit ($) - Sales revenue 823,100 Income summary 823,100 (To record the closing of revenue account) b. To determine To prepare: The post-closing trial balance for M Company as on December 31, 2018.

3rd Edition

ISBN: 9780136912644

Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella

Publisher: Pearson Education (US)

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Chapter 4, Problem 4.16E

To determine

To prepare: The closing entries for M Company as on December 31, 2018.

To determine

To prepare: The post-closing trial balance for M Company as on December 31, 2018.

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Chapter 4, Problem 4.15E

Chapter 4, Problem 4.17E

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The closing entries for M Company as on December 31, 2018.

Solution Summary: The author explains that closing entries are prepared at the end of the accounting period in order to nullify the effect of amounts in temporary accounts and to transfer their amounts to permanent accounts.