Chapter 3, Problem 29DQ

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 indicate: The closing entry to close the income summary account of the company as on Dec. 31, 2014.