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5 1 Describe and Prepare Closing Entries for a Business Principles of Accounting, Volume 1: Financial Accounting

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The statement of retained earnings shows the period-endingretained earnings after the closing entries have been posted. Whenyou compare the retained earnings ledger (T-account) to thestatement of retained earnings, the figures must match. It isimportant to understand retained earnings is not closed out, it is only updated. Then, credit the income summary account with the total […]

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