Requirement 1. Make Buffalo Ranch Company's closing entries at December 31, 2021. Explain what they accomplish and why they are necessary. (Record debits first, then credits. Exclude explanations from any journal entries.)

Record the closing entries for Buffalo Ranch Company at December 31, 2021.Begin by closing the revenue account.

The following trial balance for Buffalo Ranch Company pertains to December 31, 2021, which is the end of the firm's year-long accounting period: (Click the icon to view the adjusted trial balance.) Read the requirements. (Click the icon to view the income statement.) (Click the icon to view the statement of retained earnings.) (Click the icon to view the balance sheet.) Requirement 1. Make Buffalo Ranch Company's closing entries at December 31, 2021. Explain what they accomplish and why they are necessary. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the closing entries for Buffalo Ranch Company at December 31, 2021. Begin by closing the revenue account. Buffalo Ranch Company Balance Sheet December 31, 2021 Assets Cash Accounts receivable Supplies Building Less: Accum. depr.-building Furniture and fixtures Less: Accum. depr.-furniture and fixtures Less: Accum. depr.-furniture and fixtures Total assets Liabilities \$201,000 Accounts payable 306,000 Salary payable 1,000 Unearned service revenue $500,000 Income tax payable (159,000)341,000 Total liabilities 130,000 (62,000)68,000 Stockholders' Equity Common stock Retained earnings Total stockholders' equity $917,000 Total liabilities and stockholders' equity $350,0009,00020,00040,000419,000 Buffalo Ranch Company Income Statement Year Ended December 31, 2021 Revenue: Service revenue $332,000 Expenses: Salary expense Depreciation expense-furniture and fixtures Depreciation expense-building Supplies expense Miscellaneous expense Income before tax Income tax expense Net income $186,000 12,000 19,000 1,000 17,000235,000 97,000 40,000 $57,000 Buffalo Ranch Company Statement of Retained Earnings Year Ended December 31, 2021 Retained earnings, December 31, 2020 Add: Net income Subtotal Less: Dividends Retained earnings, December 31, 2021 $391,000 57,000 448,000 (70,000) $378,000