Which of the following accounts should be closed to the capital account at the end of...

Which of the following accounts should be closed to the capital account at the end of the year?

		Equipment
		Service Revenue
		Prepaid Insurance
		Unearned Rentx

Solutions

Expert Solution

Service Revenue

The purpose of closing entries is to prepare the temporary accounts for the next accounting period. In other words, the income and expense accounts are "restarted".

After preparing the closing entries above, Service Revenue will now be zero. The expense accounts and withdrawal accounts will now also be zero. The balances of these accounts have been absorbed by the capital account

ekkarill92 answered 1 year ago

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