closing journal entries for accounting 1 in senior high school

1.  Journalizing closing journal entries

2. COMPLETE THE ACCOUNTING
CYCLE
1. Enumerate the steps in
preparing closing entries
2. Illustrate the steps in
journalizing closing entries
3. Find pleasure in journalizing
closing entries
ABM_FABM11-IVa-d-34

3. WHAT ARE THE TEN
STEPS IN
ACCOUNTING CYCLE?

4. 1. Analyzing business transactions from documents
2. Journalizing business transactions
3. Posting journal entries to the ledger
4. Preparing Trial balance
5. Journalizing and posting adjusting entry
(worksheet)
6. Preparing adjusted trial balance
7. Preparing Financial statements
8. Journalizing and posting Closing journal entry
9. Preparing post-closing trial balance
10.Journalizing and posting reversing journal
entry
TEN STEPS IN ACCOUNTING CYCLE

5. INCOME
EXPENSE
DRAWINGS

6. 1. Update the balance of the
owner’s capital
2. Return the balance of the
temporary accounts to zero,
so that they are ready to
measure the income,
expenses and drawings of the
next accounting period again.

7. IS THE PROCESS OF
TRANSFERRING THE BALANCES
OF THE TEMPORARY ACCOUNTS
TO THE OWNER’S PERMANENT
CAPITAL ACCOUNT.

8. All of the nominal revenue
accounts should be closed to the
income summary account by a
DEBIT to revenue and a CREDIT
to income summary
Dr. Revenue/Income
Cr. Income Summary
To close revenue accounts

9. All of the nominal expenses
accounts should be closed to the
income summary account by a
CREDIT to expense and a DEBIT to
income summary
Dr. Income Summary
Cr. Expenses
To close expenses accounts

10. The third entry closes out the income
summary to the owner’s capital if
there is a NET INCOME. If there is a
net income this entry will be a DEBIT
to income summary and a CREDIT to
owner’s capital account
Dr. Income Summary
Cr. Owner’s Capital
To close income summary account

11. The fourth entry closes out
the owner’s drawing to the
owner’s capital if there is a
NET LOSS
Dr. Owner’s Capital
Cr. Income Summary
To close income summary account

12. The fifth entry closes the
owner’s drawing to the
owner’s capital
Dr. Owner’s Capital
Cr. Owner’s Drawing
To close the drawings account

13.  Prepare closing journal entries of Jane Reyes
“DAMIT MO LABA KO”

14.  Prepare the closing journal entries and post
closing trial balance for P. MORAN CLINIC.