Below is a summarized income statement for St. Bruno Inc. (St. Bruno). a. Prepare a spreadsheet and

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Below is a summarized income statement for St. Bruno Inc. (St. Bruno).

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a. Prepare a spreadsheet and make the entry that is necessary to close the temporary accounts. Assume the balance in retained earnings on December 31, 2013 was $17,500,000.

b. Prepare the journal entry necessary to close the temporary accounts.

c. Explain why closing entries are necessary and when they should be recorded.

d. What would be the effect on net income in 2015 if St. Bruno Inc. forgot to prepare a closing entry in 2014?

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Financial Accounting A Critical Approach

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3rd Edition

Authors: John Friedlan

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Question Posted: Jun 13, 2024 02:09 AM

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Below is a summarized income statement for St. Bruno Inc. (St. Bruno). a. Prepare a spreadsheet and

Question:

St. Bruno Inc. Income Statement for the Year Ended December 31, 2014 Revenue Expenses Net income $3,750,000 2,900,000 $850,000

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Financial Accounting A Critical Approach

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