Response to the following questions:
1. What accounts are affected by closing entries? What accounts are not affected?
2. What two purposes are accomplished by recording closing entries?
3. What are the steps in recording closing entries?
4. What is the purpose of the Income Summary account?
5. Explain whether an error has occurred if a post-closing trial balance includes a Depreciation Expense account.
6. What tasks are aided by a work sheet?
7. Why are the debit and credit entries in the Adjustments columns of the work sheet identified with letters?