The process of closing temporary accounts includes recording closing entries. Closing entries are journal entries made to transfer the balances bookkeeping jackson ga of these temporary accounts to a permanent account, usually the Retained Earnings account. This helps to update the Retained Earnings account balance to match the end-of-period balance. At the start of the next accounting period, occasionally reversing journal entries are made to cancel out the accrual entries made in the previous period. After the reversing entries are posted, the accounting cycle starts all over again with the occurrence of a new business transaction. After you complete your…
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