Chapter 4, Problem 4.6BE

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:

• Debit the account: All temporary accounts with credit balances.
• Credit the account: All temporary accounts with debit balances.

To prepare: The closing entries for revenue and expense accounts post the given balances in T-Accounts, post the closing entries and balance the accounts.