Closing entries: Closing entries are prepared to close the temporary accounts at the end of the accounting period. There are basically four closing entries as follows: Closing the revenues Closing the expenses. Closing the income summary or net income. Closing the dividends/withdrawals. To prepare: The closing entries for the year.

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Chapter 3, Problem 21QS

Summary Introduction

Concept introduction:

Closing entries:

Closing entries are prepared to close the temporary accounts at the end of the accounting period. There are basically four closing entries as follows:

Closing the revenues

Closing the expenses.

Closing the income summary or net income.

Closing the dividends/withdrawals.

To prepare:The closing entries for the year.

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