Chapter 4, Problem 4.5BE

To determine

Closing entries: Closing entries are those journal entries which are passed to transfer the balances of temporary accounts to the permanent accounts. These are passed at the end of the accounting period, to transfer the final balance.

Rules for closing entries:

1. a) Debit the account: All temporary accounts with credit balances.
2. b) Credit the account: All temporary accounts with debit balances.

T-Account: It is a form of ledger account in which the debit entries are shown at the left side of the account and credit entries are shown at the right side of the account.

To Post: post the closing entries and balance the accounts.

To determine

To Identify: the balance of the accounts.