Chapter 4, Problem 4.11E

(a)

To determine

Journalizing: Journalizing is the process of recording the transactions of an organization in a chronological order. Based on these journal entries recorded, the amounts are posted to the relevant ledger accounts.

Closing Entries: Closing entries are recorded in order to close the temporary accounts such as incomes and expenses by transferring them to the permanent accounts such as income summary.

Income Summary: Income Summary is the account prepared at the end of the accounting period to which all the incomes and expenses are transferred. Any difference arising shall be Net profit / Net loss for the period.

To Prepare: The closing entries as on June 30.

(b)

To determine

To Post: the closing entries to Income Summary.