Jajajaja

What is one purpose of closing entries?

To transfer the results of operations to owner’s equity.

How is the Supplies Expense account closed?

By debiting Income Summary and crediting Supplies Expense.

What journal entries would be used to close a Fees Income account with a $4,200 balance?

Fees income 4,200 (debit) and Income Summary 4,200 (credit).

Which account typically appears within multiple closing entries?

Owner’s capital account.

What does the entry to close the Income Summary account include?

A debit to Income Summary and a credit to owner’s capital account.

In the case of a net loss and withdrawals, what happens to the owner’s capital account?

It will be debited within the third closing entry of the closing process.

Which account is closed within the fourth entry of the closing process?

Owner’s drawing account.

Which account will appear on the postclosing trial balance?

Owner’s capital account.

What statement is not correct about interpreting financial statements?

Interpreting the financial statements can only be performed by auditors.