1. Why are closing entries necessary?

2. Identify the account(s) debited and credited in each of the four closing entries, assuming the company has net income.

3. What standard classifications are used in preparing a classified balance sheet?

4. The steps in the accounting cycle are listed in random order below. List the steps in the proper sequence by placing the numbers 1-9 in the blank spaces

________Prepare a trial balance

________Journalize the transactions

________Journalize and post closing entries

________Prepare financial statements.

________Journalize and post adjusting entries.

________Post to ledger accounts.

________ Prepare a post-closing trial balance.

________ Prepare an adjusted trial balance.

________Analyze business transactions.