Chapter 5, Problem E5.22E

To determine

Closing Entries:

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

T-Accounts:

T-Accounts are the ledger accounts which uses dual entry bookkeeping. It is informal term based on the appearance of the ledgers. The debits are disclosed on the left side and credits are disclosed on the right side of the ledger.

To determine:

1. Journalize the closing entries at March 31, 2016.

2. Post the closing entries to the T-accounts and compute their ending balances.

3. Compute the Business Reduction net income or net loss.