Many companies vary on when they do closing entries. Closing entries are posted to the journal, then the ledger and then a post closing trial balance is made to determine the Retained Earnings of a business for a certain period of time, many companies do this monthly. However, each company varies on the accounting period they choose to do this in.
Closing entries should be journalized and posted. They are entered in the general journal, as well as posted in the general ledger.
yes
Closing entries are normally entered in the general journal to zero temporary and nominal accounts. They do not need to be posted to the worksheet.
Once all the closing entries have been posted to the ledger it is then time to begin working on the financial statements. A Post-Closing Trial Balance insures that all entries are made properly, at which time if needed such statements as the Balance Sheet and Statement of Owners Equity can be created.
Service Revenue
Once all the closing entries have been posted to the ledger it is then time to begin working on the financial statements. A Post-Closing Trial Balance insures that all entries are made properly, at which time if needed such statements as the Balance Sheet and Statement of Owners Equity can be created.
The worksheet is only a tool that aids in the preparation of financial statements. Any changes in account balances recorded on the worksheet are not shown in the general journal and the general ledger until the adjusting entries have been journalized and posted.
Closing entries comes first as name shows post closing entries are after closing entries and it is as simple as name suggests.
which acount have a balance after a closing entry is posted? a)salary expense b)retained earning c)income summary d)revenue
The trial balance is the list of all open accounts in the ledger (although post-closing trial balances exist as well). If the A/P (Accounts Payable) account increased on the trial balance, this would mean that entries had been made (journalized) and posted to the ledger that increase the A/P account balance. For example, buying inventory on account would increase the A/P account balance. This transaction would be journalized and then posted (process of transferring info from journal to ledger). This would result in an increase in A/P on the trial balance.
The trial balance is the list of all open accounts in the ledger (although post-closing trial balances exist as well). If the A/P (Accounts Payable) account increased on the trial balance, this would mean that entries had been made (journalized) and posted to the ledger that increase the A/P account balance. For example, buying inventory on account would increase the A/P account balance. This transaction would be journalized and then posted (process of transferring info from journal to ledger). This would result in an increase in A/P on the trial balance.
the accounts affected by closing entries are temporary accounts like expenses