What are the two purposes of preparing closing entries

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Reference no: EM131519749

Question: 1. What are the two purposes of preparing closing entries?

2. What does it mean to close temporary accounts? Which of the following account types are closed: assets, liabilities, dividends, revenues, and expenses?

3. Describe the debits and credits for the three closing entries required at the end of a reporting period. 26. In its first four years of operations, Chance Communications reports net income of $300, $900, $1,500, and $2,400, respectively, and pays dividends of $200 per year. What would be the balance of Retained Earnings at the end of the fourth year?

Reference no: EM131519749

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