Question

Sequence the steps for closing entries.

close the service revenue account
close the dividends account
close the income summary account
close the operating expenses account

Answer 1

Step 1: A

Step 2: D

Step 3: C

Step 4: B

Step-by-step explanation:

Sequence for the steps to close entries:

1. close the service revenue account by transferring funds to income summary account
2. close the operating expenses account by transferring funds to income summary account
3. close the income summary account by transferring funds to retained earnings account
4. close the dividends account by transferring funds to retained earnings account