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identify the account debited and credited in each of the four closing entries, assuming the company...

identify the account debited and credited in each of the four closing entries, assuming the company has net income for the year
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Answer #1

1. First closing entry is to close revenue accounts: Revenue accounts will be debited and income summary will be credited.

2.Second closing entry is to close expenditure accounts: Income summary account will be debited and expenditure account will be credited.

3.Third closing entry is to close net income to retained earnings :income summary will be debited and retained earnings will be credited.

4.Fourth closing entry is to close dividends to retained earnings: dividends will be debited and retained earnings will be credited.

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