Question

Record the closing entries in the general ledger of Zips Storage as of January 1, 2024. The general ledger includes the following account balances:

Answer 1

To close the temporary accounts in the general ledger of Zips Storage, the balances are transferred to the retained earnings account.

Step-by-step explanation:

The closing entries in the general ledger of Zips Storage as of January 1, 2024, include transferring the balances of temporary accounts (revenue, expenses, and dividends) to the retained earnings account. The specific entries depend on the account balances, but here is a general example:

• Revenue: Debit Revenue and credit Retained Earnings
• Expenses: Debit Retained Earnings and credit Expenses
• Dividends: Debit Retained Earnings and credit Dividends

This process ensures that the temporary accounts are reset to zero and the net income or loss is properly recorded in the retained earnings account.