Closing entries are dated in the journal as of
A) the date they are actually journalized, although they are generally prepared after the end of the accounting period
B) the last day of the accounting period
C) the first day of the accounting period, although they are actually journalized well after the beginning of the accounting period
D) the first day of the subsequent accounting period

Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to transfer the balances of temporary accounts (revenues, expenses, and dividends) to the retained earnings account. Therefore, they should be dated as of the last day of the accounting period. Option A is incorrect because closing entries are prepared after the end of the accounting period, but they should be dated as of the last day of the period. Option C is incorrect because closing entries are not made at the beginning of the accounting period. Option D is incorrect because closing entries relate to the current accounting period, not the subsequent one.

Closing Entries Are Dated in the Journal as of