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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-2 Recording Closing Entries for Income Statement Accounts.

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Presentation on theme: "CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-2 Recording Closing Entries for Income Statement Accounts."— Presentation transcript:

1 CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 16-2 Recording Closing Entries for Income Statement Accounts

2 CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 16-2 THE INCOME SUMMARY ACCOUNT page 487

3 CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 16-2 CLOSING ENTRY FOR ACCOUNTS WITH CREDIT BALANCES 1 2 page Debits to close 4 1.Heading 2.Date4.Credit to Income Summary 33

4 CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 16-2 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1 24 page Credits to close 1.Date 2.Account debited 4.Debit amount 3 3

5 CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 16-2 SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 490 Bal.209,960.00Closing 209, (New Bal. zero) Purchases Adj. (mdse. inv.)15,840.00Closing (credit amounts)500, Closing (debit accounts)404,099.15(New Bal.80,313.95) Income Summary

6 CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 16-2 CLOSING ENTRY TO RECORD NET INCOME page Credit Retained Earnings 1.Date 2.Debit Income Summary

7 CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 16-2 CLOSING ENTRY FOR DIVIDENDS page Credit Dividends 1.Date 2.Debit Retained Earnings 1 2 3

8 CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 16-2 COMPLETED CLOSING ENTRIES FOR A CORPORATION RECORDED IN A JOURNAL page 492


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