Why are income statement accounts called temporary accounts. Why are temporary accounts closed? What would happen if the revenue and expense accounts were not closed. Imagine a Company had $8,000 of Service revenue in year 1 and $10,000 of Service revenue in year 2. If the Company failed to journalize and post closing entries at the end of year 1, what would the balance in Service revenue be at the end of year 2? Answer all parts of this question.