Principles of Financial Accounting, Chapter 4
Preparation of Closing Entries
P 1. Affordable Trailer Rental rents small trailers by the day for local moving jobs.
This is its adjusted trial balance at the end of the current fiscal year:
Required
1. From the information given, record closing entries in journal form.
2. If closing entries were not prepared at the end of the accounting period, what problems would result in the next accounting period?