DAILY ASSESSMENT 4 1. In what order are the financial statements prepared? Why? 2. What purpose is served by closing the accounts? 3. Give the closing entries for the following accounts (balances in parentheses): Service Revenue ($5,000), Salaries Expense ($1,200), Income Summary (credit balance of $2,000), Withdrawals ($2,500).

1. In what order are the financial statements prepared? Why? 2. What purpose is served by closing the accounts? 3. Give the closing entries for the following accounts (balances in parentheses): Service Revenue ($5,000), Salaries Expense ($1,200), Income Summary (credit balance of $2,000), Withdrawals ($2,500)