The adjusted trial balance for Settles Tennis Club at the end of the company's fiscal year appears
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The adjusted trial balance for Settles Tennis Club at the end of the company's fiscal year appears shown below.
Required
1. Prepare T accounts and enter the balances for B. Settles, Capital; B. Settles, Withdrawals; Income Summary, and all revenue and expense accounts.
2. Enter the four required closing entries in the T accounts, labeling the components a, b, c, and d, as appropriate.
3. Prepare an income statement, a statement of retained earnings, and a balance sheet for Settles Tennis Club.
4. Explain why it is necessary to make closing entries at the end of an accounting period.
![The adjusted trial balance for Settles Tennis Club at the](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images4/95-B-A-A-C(888).png)
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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