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P4-2A d Post the closing entries Use the three-column form of account Income Summary is account No 350?
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∙ 10y ago
income summary
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∙ 10y ago
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What entries can properly close a temporary account debit income summary credit?
Standard closing entries: Close Revenue accounts to Income Summary by debiting Revenue and crediting Income Summary. Close Expense accounts to Income Summary by debiting Income Summary and crediting Expense accounts. Close Income Summary to Capital account by debiting Income Summary and crediting Capital account. Close Withdrawals account to Capital account by debiting Capital account and crediting Withdrawals account.
All of the closing entries will adjust to update that account?
all of the closing entries will adjust to update the retained earnings account.
What comes first closing journal entries or post closing entries?
Closing entries comes first as name shows post closing entries are after closing entries and it is as simple as name suggests.
What two purposes are accomplished by recording closing entries?
1.Prepares the accounts affected by closing entries by giving them a balance of 0. 2. to update the owners capital account for the previous period
The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are?
Adjusting and Closing Entries.
Which account have balance after closing entries are posted?
which acount have a balance after a closing entry is posted? a)salary expense b)retained earning c)income summary d)revenue
All of the closing entries will adjust to update that account?
all of the closing entries will adjust to update the retained earnings account.
What entries can properly close a temporary account debit income summary credit?
Standard closing entries: Close Revenue accounts to Income Summary by debiting Revenue and crediting Income Summary. Close Expense accounts to Income Summary by debiting Income Summary and crediting Expense accounts. Close Income Summary to Capital account by debiting Income Summary and crediting Capital account. Close Withdrawals account to Capital account by debiting Capital account and crediting Withdrawals account.
What are the journal entries that bring the account up to date at the end of the accounting period called?
closing entries
What comes first closing journal entries or post closing entries?
Closing entries comes first as name shows post closing entries are after closing entries and it is as simple as name suggests.
What account will have a zero balance after closing entries have been jonrnalized and posted?
Service Revenue
What two purposes are accomplished by recording closing entries?
1.Prepares the accounts affected by closing entries by giving them a balance of 0. 2. to update the owners capital account for the previous period
The two types of journal entries needed to change general ledger account balances at the end of the fiscal period are?
Adjusting and Closing Entries.
Why are closing entries necessary to a business?
at the end of a fiscal year it is most desirable to have the capital account
When posting closing entries do you post each expense and each revenue amount to income summary so that each account is cleared out for the next period?
You journalize and post each income or expense individually to its own income/expense account, but use the total of all the income or expense accounts to jounalize/post to the income summary.
What are the steps in the accounting cycle?
The 8 steps in an accounting cycle areRecord transactions in journal.Post transactions to ledger accounts.Prepare adjusting entries at end of fiscal period and post to ledger accounts.Prepare summary of account balances.Prepare income statement from revenue and expense account balances.Close revenue and expense accounts to Retained Earnings.Prepare post-closing summary of account balances.Prepare balance sheet and statement of cash flows.
What accounts are affected by closing entries?
the accounts affected by closing entries are temporary accounts like expenses
