LESSON 8-2 Recording Closing Entries
NEED FOR THE INCOME SUMMARY ACCOUNT page 207
CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE page 208 1 2 1. Write the heading. 2. Write the date. ...
CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 209 1 2 4 4. Debit amount 3. Credit 2. Income Summary...
CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT page 210 3. Credit 2. Debit 1. Date 1 (Inc...
CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT page 211 3. Credit 2. Debit 1. Date 1 (Credit to close) 2 3
TERMS REVIEW <ul><li>permanent accounts </li></ul><ul><li>temporary accounts </li></ul><ul><li>closing entries </li></ul>p...
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Lesson08 2g

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Lesson08 2g

  1. 1. LESSON 8-2 Recording Closing Entries
  2. 2. NEED FOR THE INCOME SUMMARY ACCOUNT page 207
  3. 3. CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE page 208 1 2 1. 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. (Debit to close) 3 4
  4. 4. CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 209 1 2 4 4. Debit amount 3. Credit 2. Income Summary 1. Date (Credit to close) 3
  5. 5. CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT page 210 3. Credit 2. Debit 1. Date 1 (Income Summary: debit to close) (Capital: credit to record net income) 2 3
  6. 6. CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT page 211 3. Credit 2. Debit 1. Date 1 (Credit to close) 2 3
  7. 7. TERMS REVIEW <ul><li>permanent accounts </li></ul><ul><li>temporary accounts </li></ul><ul><li>closing entries </li></ul>page 212

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