1. Accounting Bellwork 3 rd Hour: How is the Income Summary account different from other temporary capital accounts?

2. 1.It is used only at the end of the fiscal year to summarize the balances from the revenue and expense accounts. 2.It does not have a normal balance, which means that it does not have an increase or a decrease side. Accounting Bellwork

3. Plans for today Grade HomeworkHomework Begin Ch10-2 Assignment

4. Section 2Posting Closing Entries and Preparing a Post- Closing Trial Balance What You’ll Learn  How to record closing entries in the general ledger. The purpose of the Income Summary account.  The purpose of a post-closing trial balance.  How to prepare a post-closing trial balance. What You’ll Learn  How to record closing entries in the general ledger. The purpose of the Income Summary account.  The purpose of a post-closing trial balance.  How to prepare a post-closing trial balance.

5. Why It’s Important A post-closing trial balance verifies that the closing entries are properly recorded in the general ledger and that you are ready to start the next accounting period. Why It’s Important A post-closing trial balance verifies that the closing entries are properly recorded in the general ledger and that you are ready to start the next accounting period. Section 2Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.) Key Term  post-closing trial balance Key Term  post-closing trial balance

6. Completing the Eighth Step in the Accounting Cycle: Posting Closing Entries to the General Ledger Section 2Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.) Only difference is that you write the word closing in the description column.

7. The Ninth Step in the Accounting Cycle: Preparing a Post-Closing Trial Balance Section 2Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)  Prepared to make sure total debits equal total credits after the closing entries are posted.  Only accounts with balances are listed (permanent accounts).  Prepared to make sure total debits equal total credits after the closing entries are posted.  Only accounts with balances are listed (permanent accounts).

8. Demonstration Problem 10-6

9. permanent Temporary

10. Allison’s Repair Shop Post-Closing Trial Balance December 31, 200- 13255.--101 Cash In Bank Specific date. 123.--105 Accounts Receivable-C. Smythe 900.--110 Accounts Receivable-Bell & Sons 3100.--115 Computer Equipment 5500.--120 Repair Equipment 800.--201 Accounts Payable -Midtown Computers 395.--205 Accounts Payable –Nagle Supplies 21683.--301 A. Degaro, Capital 22878.--Total22878.--

11. Check Your Understanding p.246. Thinking Critically 1 & 2 Problem 10-3 and 10-4 p248, Understanding Accounting Concepts and Procedures 1-14. Audit with Alex Thinking Critically 1 & 2 Problem 10-3 and 10-4 p248, Understanding Accounting Concepts and Procedures 1-14. Audit with Alex Section 2Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)