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.

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Chapter 4, Problem 12QS

Summary Introduction

Concept Introduction:

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.

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