lesson08 2g
DESCRIPTION
TRANSCRIPT
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 8-2LESSON 8-2
Recording Closing Entries
2
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-2
NEED FOR THE INCOME SUMMARY NEED FOR THE INCOME SUMMARY ACCOUNTACCOUNT page 207
3
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-2
(Debit to close)
CLOSING ENTRY FOR AN INCOME STATEMENT CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCEACCOUNT WITH A CREDIT BALANCE page 208
1122 33
441. Write the heading.
2. Write the date.3. Write the title of the account debited. Record the debit amount.
4. Write the title of the account credited. Record the credit amount.
4
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-2
(Credit to close)
CLOSING ENTRY FOR INCOME STATEMENT CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESACCOUNTS WITH DEBIT BALANCES page 209
11 22 44
4. Debit amount3. Credit2. Income Summary1. Date
33
5
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-2
(Income Summary:debit to close)
(Capital: credit torecord net income)
CLOSING ENTRY TO RECORD NET INCOME CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNTSUMMARY ACCOUNT page 210
3. Credit
2. Debit
1. Date
11 22
33
6
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-2
(Credit to close)
CLOSING ENTRY FOR THE OWNER’S CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNTDRAWING ACCOUNT page 211
3. Credit
2. Debit
1. Date
11 22
33
7
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 8-2
TERMS REVIEWTERMS REVIEW
permanent accounts temporary accounts closing entries
page 212