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 retained earnings . It is passed at the end of the accounting period, to transfer the final balance. Retained Earnings Statement: Retained Earnings Statement is the statement showing the balance of retained earnings left at the end of the period after including the net profit for the period and distributing the dividend to the shareholders. To Prepare: K Photography’s closing entries at December 31, 2018.

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Chapter 4, Problem 4.22E

1.

To determine

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 retained earnings. It is passed at the end of the accounting period, to transfer the final balance.

Retained Earnings Statement: Retained Earnings Statement is the statement showing the balance of retained earnings left at the end of the period after including the net profit for the period and distributing the dividend to the shareholders.

To Prepare: K Photography’s closing entries at December 31, 2018.

2.

To determine

K Photography’s ending Retained earnings balance at December 31, 2018

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