Question: What are the two purposes of preparing closing entries
What are the two purposes of preparing closing entries?
Answer to relevant QuestionsDescribe the debits and credits for the three closing entries required at the end of a reporting period.Rebel Technology maintains its records using cash-basis accounting. During the year, the company received cash from customers, $50,000, and paid cash for salaries, $21,900. At the beginning of the year, customers owe Rebel ...Midshipmen Company borrows $15,000 from Falcon Company on July 1, 2015. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2016. (1) Record the borrowing for Midshipmen on July 1, 2015. (2) ...The year-end adjusted trial balance of Hilltoppers Corporation included the following account balances: Cash, $5,000; Equipment, $17,000; Accounts Payable, $3,000; Common Stock, $11,000; Retained Earnings, $8,100; Dividends, ...Below are transactions for Hurricane Company during 2015.a. On October 1, 2015, Hurricane lends $9,000 to another company. The other company signs a note indicating principal and 12% interest will be paid to Hurricane on ...
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