ANSWER RATING: Sign up to view the full answer View Full Answer. Analyzing and Classify Data about an Economic Event. For instance, think about the way that the income statement depicts some entity’s operational efficiency. Following are the closing entries for England Tours for 20X3. Events are analyzed to find the impact on the financial position or to be more specific the impacts on the accounting equation. However, the trial balance mainly detects arithmetical errors. I cannot find any examples about this question on my book or anywhere else Please help.~ The following list includes selected permanent account and all of the temporary accounts from the December 31, 2008, unadjusted trial balance of Emiko Co. a business owned by Kumi Emiko. There can be various reasons for preparing a post-closing trial balance. = $30,200 (dr.) + $2,600 (dr.)). See Answer Add To cart Related Questions. This is commonly referred to as closing … Prepare the post closing trial balance. The accountant needs to make sure that the ledgers are correctly records according to the accounting equation so that the financial statements are mathematically correct. They all have the same purpose (i.e. The purpose of the closing entry is to reset the temporary account balances to zero on the general ledger, the record-keeping system for a company's financial data. b. adjust the asset accounts to their correct current balances. It is the third (and last) trial balance prepared in the accounting cycle. See Answer Add To cart Related Questions. The main purpose of these closing entries is to bring the temporary journal account balances to zero for the next accounting period, which keeps the accounts reconciled. a. all asset and liability accounts. Table of Contents. Closing entries transfer the revenue, expenses and dividend balances for the period to retained earnings and then retained earnings account gets adjusted with the amount of net income or loss. d. update the Retained Earnings account. I don't quite understand how you incorporate the information into these accounts. In other words, the temporary accounts are closed or reset at the end of the year. Record daily operational financial transactions Since the goal is to create timely and accurate financial statements, any procedures that can be integrated into the daily operations will facilitate a quicker monthly closing process. 1.99. A. adjust the asset accounts to their correct current balances. b. out the retained earnings account. Meaning, they take advantage of their data to quantify their financial position. d) zero out the liability accounts. A major purpose of preparing closing entries is to update the Retained Earnings account. d. the dividends account will be debited. Uber Member : Feb 22, 2008, 08:36 PM I'm not sure I know exactly what you're asking. Purpose: At the end of the period, the accountant normally needs to prepare the financial statements and other related financial reports for management use. For example, employees who prepare the accounts may make mistakes in adding the entries. How, when and why do you prepare closing entries? Failure of the debit and credit sides of the trial balance to agree indicates that errors exist in the books of account. This trial balance does not include any gain, loss or summary accounts balance as these are temporary accounts, and the balances in these accounts move to the retained earnings account. By doing so, companies move the temporary account balances to the permanent accounts of the balance sheet. A trial balance lists the ending balance in each general ledger account.The total dollar amount of the debits and credits in each accounting entry are supposed to match. 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