Closing Entry

The statement of comprehensive income for Basket Weavers Inc. for the year ended June $30,2017,$ is

provided.

Basket Weavers Inc.

Statement of Comprehensive Income

For the Year Ended June $30,2017$

Service revenue

Operating expenses.

income before income tax.

Income tax expense

Net income.

Other comprehensive income.

Comprehensive income.

Prepare a journal entry to close the accounts to Retained Earnings.

What problem may arise in closing the accounts if the information from the statement of