Concept explainers
1.
Income Statement: Income Statement is a financial statement that is prepared by all the companies by enumerating all the expenses and revenues to calculate the resulting difference of Net
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.
Formula:
To prepare: Company’s income statement for the year ended December 31, 2018.
2.
To prepare: Company’s statement of retained earnings for the year ended December 31, 2018.
3.
To prepare: Company’s classified balance sheet at December 31, 2018.
4.
To Prepare: The closing entries for BI System at December 31, 2018.
5.
To calculate: The Company’s current ratio at December 31, 2018.
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