a. Explanation Closing entries: Closing entries are prepared at the end of the accounting period in order to nullify the effect of amounts in the temporary accounts and to transfer their amounts to permanent accounts. Trial balance : A trial balance can be defined as a bookkeeping worksheet wherein the balances of the ledgers of a company are brought together into the debit column and the credit column. A trial balance is prepared by a company periodically, generally at the end of an accounting period. It is usually prepared to make sure that the entries in the bookkeeping system of a company are correct and true. Prepare the closing entries as shown below. Date Particulars L/F Debit ($) Credit ($) - Service revenue 390,000 Income summary 390,000 (To record the closing of revenue account) - Income summary 148167 Wage expense ... b. To determine To prepare: The post-closing trial balance as of December 31, 2018.

2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 4, Problem 4.5P

To determine

To prepare: The necessary closing entries at year-end.

To determine

To prepare: The post-closing trial balance as of December 31, 2018.

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Chapter 4, Problem 4.4P

Chapter 4, Problem 4.6P

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The necessary closing entries at year-end.

Solution Summary: The author explains that closing entries are prepared at the end of the accounting period to nullify the effect of amounts in temporary accounts and to transfer their amounts to permanent accounts.