Closing entries are made in the journal and posted to the ledger accounts.

Name: Closing entries are made in the journal and posted to the ledger accounts.
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Closing entries are made in both the journal and ledger accounts to transfer balances of temporary accounts (revenue, expense, and dividends) to the retained earnings account. The balances of permanent accounts (assets, liabilities, and equity) are not affected by closing entries.

Closing Entries Are Made in the Journal and Posted to the Ledger