1. At the end of the period it is necessary to close all temporary accounts. (1) Explain why process is required (15 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry.
2. If the two columns of a trial balance are equal, does it mean that there are no errors in the accounting records? Explain. (15 points) If the totals of the trial balance columns do not equal, what are some corrective actions that might be taken to find the error?