This exercise illustrates the preparation of closing entries and discusses their importance.
The recording and posting of closing entries is a required step in the accounting cycle.
- Prepare the closing entries for Carl”s Video Service, Inc. at April 30, 2014.
- Discuss the two reasons why closing entries are prepared.
- Prepare a post-closing trial balance for Carl”s Video Service, Inc.
- Explain why a post-closing trial balance is prepared and indicate what type of accounts will appear on the post-closing trial.