CLOSING ENTRIES: SERVICE BUSINESS - PROBLEM Exercise 1: Listed below are a number of accounts. Use the table below to classify each account. Indicate whether it is a temporary or permanent account, whether it is included in the Income Statement or Statement of financial position, and if it is closed at the end of the accounting period, and, if so, how it is closed. The first one is done as an example. Account Accounts receivable Acc dep-Equipment Advertising expense Cash Unearned revenues Dep exp-Equipment Owner, Withdrawals Equipment Insurance expense Interest expense Miscellaneous exp Notes payable Office supplies Supplies expense. Prepaid insurance Rent expense Owner. Capital Salaries expense Salaries payable Revenue Permanent (P) or Temporary (T) Income Statement (IS) Closed (C) or Not Closed or statement (NC) Closed with a Debit (Dr.) or Credit (Cr.) of Financial Position (SFP)