Requirement 7. Prepare the closing entries and post to the T-accounts.

Begin by preparing the closing entries. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

Start by closing revenues.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Service Revenue

Clos. (1)

To close revenue.

Close expenses for the period.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Clos. (2)

To close expenses.

Close Income Summary.

Date

Accounts and Explanation

Debit

Credit

Dec. 31

Clos. (3)

To close Income Summary.

Close withdrawals.

Date			Accounts and Explanation	Debit	Credit
Dec. 31
Clos. (4)
			To close withdrawals.