Closing Entries At the end of the year, the adjusted trial balance for Devonshire Corporation… 1 answer below »

 
   

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Closing Entries

At the end of the year, the adjusted trial balance for Devonshire Corporation contains the following

amounts for the income statement accounts. (The balance in each account is the normal

balance for that type of account.)

Required

1. Prepare all necessary journal entries to close Devonshire Corporation’s accounts at the end of

the year.

2. Assume that the accountant for Devonshire forgets to record the closing entries. What will be

the effect on net income for the following year? Explain your answer.