A partial adjusted trial balance is shown as follows for Sparks Electricity:

Required
a. Prepare Sparks' income statement and statement of retained earnings for the month of June.
b. Prepare the appropriate closing entries at June 30.
c. What is the purpose of "closing the books" at the end of an accounting period?

Sparks Electricity Partial Adjusted Trial Balance June 30 Debit Credit S17,150 30,500 Retained Earnings Service Revenue Advertising Expense Depreciation Expense Interest Expense Salaries Expense Supplies Expense Utilities Expense Dividends 1,200 10,750 560 5,000 2,500 2,080 1,000