Concept explainers
(a)
Closing entries:
Closing entries are those
Post-closing
Once the closing entries are journalized, and posted by the company, then the next step is to prepare another trial balance known as post-closing trial balance. The post-closing trial balance contains a list of all the permanent accounts, and its balances.
To prepare: The closing entries of Company T.
(b)
The post-closing balance in retained earnings.
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