Presentation on theme: "Chapter 10 Accounting Ch.10...Have students be t-accounts. Give students index cards that tell them what accounts they are and what t-accounts they are."— Presentation transcript:
Chapter 10 Accounting Ch.10...Have students be t-accounts. Give students index cards that tell them what accounts they are and what t-accounts they are.
Journal entries made to update general ledger accounts at the end of the fiscal period. Recorded on next journal page following the page on which you recorded the last daily transactions for the month. Entries are recorded in General Debit and General Credit columns.
Entries used to prepare temporary accounts for a new fiscal period. Permanent Accounts: accounts used to accumulate information from one fiscal period to the next. ◦ Also called real accounts ◦ Assets, liabilities, capital ◦ The ending balances for one fiscal period are the beginning account balances for the next fiscal period.
Temporary Accounts: accounts used to accumulate information until it is transferred to the owner’s capital account. ◦ Revenue, expenses, drawing, income summary ◦ Shows changes in the owner’s capital for a single fiscal period ◦ Ending balances will be zero
Used to summarize the closing entries for revenue and expenses DOES NOT have a normal balance Balance is determine by net income or net loss ◦ If Revenue>Expenses: Net Income: Credit Balance ◦ If Revenue<Expenses: Net Loss: Debit Balance Temporary account