1. Explanation Closing Entries: Closing entries are those journal entries which are passed to transfer the balances of temporary accounts to the permanent accounts. These are passed at the end of the period, to transfer the final balance. Closing entry of Revenue accounts: Services revenue is a revenue account, and it is decreased. Therefore, debit Services revenue account. Retained earnings are the component of Stockholders’ Equity , and they are increased. Therefore, credit retained earnings account... 2. To determine To Calculate: The ending balance of retained earnings.

4th Edition

ISBN: 9781259934773

Author: SPICELAND

Publisher: MCG

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Chapter 3, Problem 3.17E

To determine

To Prepare: The necessary closing entries.

To determine

To Calculate: The ending balance of retained earnings.

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Chapter 3, Problem 3.16E

Chapter 3, Problem 3.18E

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The necessary closing entries.

Solution Summary: The author explains that closing entries are journal entries which are passed to transfer the balances of temporary accounts to permanent accounts.