Please explain the closing process on this example. somehow I am not getting how to do closing entries in accounting.

2:31 ~ MOKO The answer is as follows Explanation: Income statement Service revenue 180800 Interest revenue 7500 Total revenue 188300 Depreciation- Equipment 28,000 Wages expenses 85000 Rent exoenses 48000 Insurance expense** 6500 Interest expenses 5700 173,200 Net Income 15,100 Owner's Equity Owner's capital 178,500 Add Net income 15,100 Less Drowings (30,000) Owner's equity balance 163,600 Classified balance sheet Current Assets Current liabilities Cash $ 95,600 Accounts payable $ 52,000 Notes receivable 50,000 Prepaid insurance S 16,000 Prepaid rent S 4,000 $ 165,600 Long term liabilities Long term payable $ 63,000 Long term assets Equipment $ 170,000 Owner's equity $ 163,600 Less Accumulated depreciation $ (57,000) $ 113,000 $ 278,600 $ 278,600 1 file downloaded. TI - Ask another question 1/ 3,200. I nave assumed insurance 11I O A