LESSON 8-2 Recording Closing Entries

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Recording Adjusting and Closing Entries for a Service Business

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Presentation transcript:

LESSON 8-2 Recording Closing Entries 5/20/2019 LESSON 8-2 Recording Closing Entries GREEN

LESSON 8-2

TERMS REVIEW Permanent Accounts Accounts used to accumulate information from one fiscal period to the next. Assets Liabilities Owner’s Equity (capital) Lesson 9-2, page 203 LESSON 8-2

TERMS REVIEW Temporary Accounts Accounts used to accumulate information until it is transferred to the owner’s capital account. Revenue (Sales) Expenses Owner’s drawing Income Summary Lesson 9-2, page 203 LESSON 8-2

CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE page 208 (Debit to close) LESSON 8-2

LESSON 8-2

CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 209 (Credit to close) 1. Date 2. Income Summary 3. Credit 4. Debit amount LESSON 8-2

LESSON 8-2

CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT page 210 1. Date 2. Debit (Income Summary: debit to close) (Capital: credit to record net income) 3. Credit LESSON 8-2

LESSON 8-2

CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT LESSON 8-2 5/20/2019 CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT page 211 1. Date (Credit to close) 2. Debit 3. Credit LESSON 8-2 GREEN

LESSON 8-2

LESSON 8-2

END HERE TODAY LESSON 8-2

LESSON 8-2

TERMS REVIEW Permanent Accounts Accounts used to accumulate information from one fiscal period to the next. Assets Liabilities Owner’s Equity (capital) Lesson 9-2, page 203 LESSON 8-2

TERMS REVIEW Temporary Accounts Accounts used to accumulate information until it is transferred to the owner’s capital account. Revenue (Sales) Expenses Owner’s drawing Income Summary Lesson 9-2, page 203 LESSON 8-2

LESSON 8-2

LESSON 8-2

LESSON 8-2

LESSON 8-2

LESSON 8-2

LESSON 8-2

LESSON 8-2