Explain the steps in preparing a worksheet. Discuss the purpose of closing entries. After the financial statements are complete, the company will "close the books" by preparing closing entries for the "temporary" accounts. Closing entries are entered in the general journal first and then posted to the individual accounts in the general ledger. A third trial balance (the post-closing trial balance) is prepared to be certain debits and credits are still equal after the temporary accounts are closed out to zero. The post-closing trial balance contains only permanent balance sheet accounts