The Amounts Below Appeared in the Income Statement and Balance

question 24

Essay

The amounts below appeared in the Income Statement and Balance Sheet columns of a company's December 31 work sheet. In the space provided record the closing entries on December 31 (no explanations are necessary).

---

Definitions:

Purchase-Money Security Interest

A security interest or claim on property that secures repayment of the money used to purchase the property, commonly seen in secured transactions.

Financing Statement

A document filed to give public notice of a security interest in personal property, securing payment or performance of an obligation.

Chattel Paper

A document or electronic record indicating both a monetary obligation and a security interest in or a lease of specific goods.

Monetary Obligation

A required payment of money owed by one party to another, typically defined by the terms of a contract or agreement.