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Lesson 16 2
1.
LESSON 16-2 Recording Closing
Entries for Income Statement Accounts CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning
2.
2 THE INCOME SUMMARY
ACCOUNT CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning page 487 LESSON 16-2
3.
3 CLOSING ENTRY FOR
ACCOUNTS WITH CREDIT BALANCES 3 page 488 3 1 2 4 1. Heading 2. Date 3. Debits to close 4. Credit to Income Summary CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning LESSON 16-2
4.
4 CLOSING ENTRY FOR
INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1. 2. 3. 4. page 489 Date Account debited Credits to close Debit amount 3 3 1 2 4 CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning LESSON 16-2
5.
SUMMARY OF CLOSING
ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES Bal. (New Bal. zero) Adj. (mdse. inv.) Closing (debit accounts) Purchases 209,960.00 Closing (New Bal. CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning page 490 209,960.00 Income Summary 15,840.00 Closing (credit amounts) 404,099.15 5 500,253.10 80,313.95) LESSON 16-2
6.
CLOSING ENTRY TO
RECORD NET INCOME 6 page 491 1 2 3 1. Date 2. Debit Income Summary 3. Credit Retained Earnings CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning LESSON 16-2
7.
7 CLOSING ENTRY FOR
DIVIDENDS page 491 1 2 3 1. Date 2. Debit Retained Earnings 3. Credit Dividends CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning LESSON 16-2
8.
8 COMPLETED CLOSING ENTRIES
FOR A CORPORATION RECORDED IN A JOURNAL CENTURY 21 ACCOUNTING Ā© 2009 South-Western, Cengage Learning page 492 LESSON 16-2
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