Chapter 4, Problem 5GLP

To determine

Closing Entries:

The journal entries prepare to close all the temporary accounts at the end of the accounting period is called closing entries.

Income Statement:

The statement which shows the revenues earned and expenses incurred during a particular year is called Income statement.

Statement of Owner’s Equity:

The statement which shows changes in the owners’ equity due to net income or loss and owners’ withdrawal during the accounting period is called statement of owner’s equity.

Balance Sheet:

A financial statement which shows the financial position of a company during specified accounting period is called a balance sheet.

To determine:

Prepare closing entries, create the income statement and the classified balance sheet, and then indicate which accounts appear on the post-closing trial balance.