please explain

Practice 3.7, but just do the closing entry 300 Practice 3.7 - Prepare the financial statements (including a classified balance sheet) for Your Company as of 12/31/X2 given the following account balances. Advert Exp 15 Land (held speculation) 20 AP 20 Land (used business) 100 AR 35 Service Revenue Cash 755 Supplies 15 Common Stock 180 Supplies Expense 25 Depreciation Exp. 20 Retained Earnings 250 Dividends 35 Patent SO Copyright 15 Note Receiv (2/1/X8) 30 Insurance Expense 15 Note Payable (5/1/X5) 200 Equipment 20 Wages Payable 200 Accum. Deprec.-Equip. 5 Wages Expense 15 Inventory. 15 Unearned Revenue 25