1. (TCO 3) At the end of the period it is necessary to close all temporary accounts. (1) Explain why this process is required (10 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry. (10 points) (Points : 20)
It’s basically all about bringin the account back to zero. It is necessary to close provisional financial records at the end of the financial report because when they are closed its of course back to zero, for instance;
(2). I would Debit Salary Expense and Credit to Payroll Expenses at the end of the month, for example, Salary Expense 1800 ,Credit Payroll=1800

2. (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how the debit/credit rules are used when developing journal entries (10 points) and (2) provide an example of the application of the debit/credit rules in the form of a journal entry. (10 points)(Points : 20)
1. As I understood in accounting a debit rises the balance and a credit cuts the balance, + or -. Using a double entry system, we would debit one account and credit the other to get the journal in balance. When we debit an account, we increase the balance. When we credit the account, we decrease the balance. The financial records that have a standard debit balance are resources, the owner's equity, disbursements and losses. Standard credit balances are liabilities, equity, revenue, and gains.
2. An example would be debit rent expense and credit bank account for instance, the amount of rent I have to pay is 3000, Checking,