Chapter 4, Problem 4.10SE

To determine

Concept Introduction: Closing entries transfer the revenues, expenses, and dividends balance to retained earnings account, to prepare the books of the company for the next period. Initially, the revenues and expenses are transferred first to an account known as an Income summary account. The income summary account is like a temporary account that shows the amount of net income or loss for the current period. Its ending balance is transferred to the retained earnings account.

The closing entries.