Chapter 4, Problem 4.14BE

(a)

To determine

Closing entries:

Closing entries are those journal entries, which are passed to transfer the final balances of temporary accounts, (all revenues account, all expenses account and dividend) to the income summary account. Closing entries produce a zero balance in each temporary account.

Statement of retained earnings:

This is an equity statement which shows the changes in the stockholders’ equity over a period of time.

To prepare: The closing journal entries of BP Incorporation.

(b)

To determine

The ending balance in retained earnings of BP Incorporation.