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 ($) Credit ($) - Service revenue 390,000 Income summary 390,000 (To record the closing of revenue account) - Income summary 148167 Wage expense ... b. To determine To prepare: The post-closing trial balance as of 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 4.5P

To determine

To prepare: The necessary closing entries at year-end.

To determine

To prepare: The post-closing trial balance as of December 31, 2018.

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Chapter 4, Problem 4.4P

Chapter 4, Problem 4.6P

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Use the following information to answer Exercises E5-23 through E5-25. The adjusted trial balance of Quality Office Systems at March 31, 2018, follows: Journalizing closing entries Requirements Journalize the required dosing entries at March 31, 2018. Set up T-accounts for Income Summary; Retained Earnings; and Dividends. Post the closing entries to the T-accounts, and calculate their ending balances. How much was Quality Office’s net income or net loss?

Find year-end closing entries (journal and ledger).

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The necessary closing entries at year-end.

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