Chapter 4, Problem 3GLP

To determine

Closing Entries: The journal entries prepare to close all the temporary accounts at the end of an accounting period is called closing entries.

Income Statement: The financial statement concerned with computation net income during an accounting period is called income statement. Net income is the excess amount of revenue over the expenses of a company and when the expenses are more than the revenue is termed as net loss.

Classified Balance Sheet: A classified balance sheet interprets the financial position of a business during particular period under different categories i.e. current assets, current liabilities, non-current assets, long-term liabilities, property, plant and equipment and owner's equity.

To Prepare:

Prepare closing entries, income statement and the classified balance sheet of Ace Construction Co. as of June 30, 2019. Prepare appropriate trial balance according to the information available.