A financial statement is the complete record of financial transactions that take place in a company at a particular point of time. It provides of the company to its internal and external users. It helps them to know the exact financial position of the company. There are four basic financial statements; they are:important financial information like assets, liabilities, revenues and expenses
Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts. It is passed at the end of the accounting period, to transfer the final balance.
Post-Closing Trial Balance:
After passing all the journal entries and the closing entries of the permanent accounts and then further posting them to each of the respective accounts, a post-closing trial balance is prepared which consists of a list of all the permanent accounts. A post-closing trial balance serves as an evidence to prove that the balance of the permanent accounts is equal.
To Prepare: An income statement for the year ended December 31, 2018.
To Prepare: The statement of retained earnings for the year ended December 31, 2018.
To Prepare: The balance sheet of Company L at December 31, 2018.
To Journalize: The closing entries for L Company.
To prepare: A post–closing trial balance of Company L for the month ended December 31, 2018
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