Closing entries transfer the balance of revenues, expenses, and dividends to the retained earnings account in order to prepare the company's books for the next period. The revenues and expenses are initially transferred to an account known as an Income summary account. The income summary account functions similarly to a temporary account in that it displays the amount of net income or loss for the current period. Its final balance is moved to the retained earnings account. The closing entries for SS Company.

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Chapter 4, Problem 4.22E

1.

To determine

Concept Introduction: Closing entries transfer the balance of revenues, expenses, and dividends to the retained earnings account in order to prepare the company's books for the next period. The revenues and expenses are initially transferred to an account known as an Income summary account. The income summary account functions similarly to a temporary account in that it displays the amount of net income or loss for the current period. Its final balance is moved to the retained earnings account.

The closing entries for SS Company.

2.

To determine

Concept Introduction: Closing entries transfer the balance of revenues, expenses, and dividends to the retained earnings account in order to prepare the company's books for the next period. The revenues and expenses are initially transferred to an account known as an Income summary account. The income summary account functions similarly to a temporary account in that it displays the amount of net income or loss for the current period. Its final balance is moved to the retained earnings account.

The net income or loss.

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