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Salaries expense is not a permanent account because it will ultimately be closed to retained earning account at the end of fiscal year and from new year salaries expense account start with nill balance.
the accounting entry to transfer retained earning to balance sheet is as follows profit and loss appropriation a/c dr to capital account No. Retained Earnings in accumulation (of all years) of earnings. It appears on the balance sheet. Any account on the balance sheet is in essence rolled over from period to period (not closed out). What is closed out TO retained earnings are revenues, expenses, and dividend account (notice how they are all accounts that appear on the income statement).
Income Summary
Closing entries close out your temporary or "income statement" accounts, as well as your dividends paid account. All of your revenue accounts increase your retained earnings, expense accounts decrease retained earnings, and dividends paid decrease retained earnings.
Profits and losses are determined via the income statement. When you close out the books for the year that profit or loss gets closed and becomes part of the retained earnings. A loss would decrease retained earning and a profit would increase it. Loosely put, the retained earnings account is a cummulation of all the profits and losses over the years (not counting any other things that affect the bottom line like dividends paid out and such)
When you close the accounts, it totals into retained earnings, so in turn, it is essentially retained earnings.
Salaries expense is not a permanent account because it will ultimately be closed to retained earning account at the end of fiscal year and from new year salaries expense account start with nill balance.
the accounting entry to transfer retained earning to balance sheet is as follows profit and loss appropriation a/c dr to capital account No. Retained Earnings in accumulation (of all years) of earnings. It appears on the balance sheet. Any account on the balance sheet is in essence rolled over from period to period (not closed out). What is closed out TO retained earnings are revenues, expenses, and dividend account (notice how they are all accounts that appear on the income statement).
Income Summary
Closing entries close out your temporary or "income statement" accounts, as well as your dividends paid account. All of your revenue accounts increase your retained earnings, expense accounts decrease retained earnings, and dividends paid decrease retained earnings.
Neither. Sales will be listed as an income statement account on the firm's trial balance. Once the accounts are closed at year end, sales will be closed into Retained Earnings.
Profits and losses are determined via the income statement. When you close out the books for the year that profit or loss gets closed and becomes part of the retained earnings. A loss would decrease retained earning and a profit would increase it. Loosely put, the retained earnings account is a cummulation of all the profits and losses over the years (not counting any other things that affect the bottom line like dividends paid out and such)
Retained earnings is a temporary account which needs to be closed in owner’s equity account at the time of liquidation of company as it is part of owner’s equity and ultimately closed to owner’s equity account.
Dividend is a temporary account at it is closed the retained earnings account at the end of fiscal year.
Accounts receivable
nominal accounts
You cannot access a closed bank account. Only the bank and the law enforcement authorities of a country have access to closed bank accounts.