3. Morgan Realty reported the following accounts on its income statement:

Commissions Earned	$83,000
Travel and Entertainment	4,500
Real Estate Board Fees Paid	8,000
Insurance Expired	780
Computer Line Charge	765
Advertising Expense	1,460
Depreciation on Computer	450
Office Supplies Used	940
Car Expenses	2,200

Required: 1. Prepare the necessary entries to close the temporary accounts. 2. Explain why the closing entries are necessary and when they should be recorded.