Acc 290 Week 3 Discussion Question 2

What are the four closing journal entries Why are they necessary What are reversing entries Why are they used What are the pros and cons of using reversing entries Why are reversing entries optional In order for me to remember which is a permanent account and which is a temporary account temporary revenues, expenses, and dividends permanent all balance sheet accounts because they are carried forward to the next accounting period assets, liabilities, and stockholders equity. The four closing journal entries are a- Revenue accounts are closed to income summary b- Expense accounts are closed to income summary c- Income summary is closed to retained earnings d- Dividends are closed to retained earnings After all the closing entries are prepared the post-closing train balance is prepared. The post-closing trial balance is where all the permanent account and their closing balances are listed. The purpose of doing this is to provide proof of equality of the permanent account balances that are being carried forward. After this occurs all the temporary account will now have zero balances because the post-closing trial balance contains only permanent balance sheet accounts. The definition of a reversing entry is a journal entry that is intentionally made