Chapter 10 Closing Entries（课件）-《实用会计英语》同步教学（大连理工大学出版社）

CLOSING ENTRIES CHAPTER 10 10-1 2 2 Closing Entries The final bookkeeping entries made at the end of an accounting period to transfer income and expense items to the balance sheet accounts. Definition 10-1 Closing Entries The closing entries consist of the four steps: First, the revenue accounts are closed by transferring their balances to the income summary account. Second, the expense accounts are closed by transferring their balances to the income summary account. Third, the income summary is closed by transferring the net balance to capital account. Last, the withdrawals accounts are closed by transferring the balance to capital account. 10-1 3 3 Closing Entries STEP 1 10-1 Closing Entries Step 1. Closing the credit balances from income statement accounts to the income summary. Jan. 31 Photocopy Fees Earned $9,900 Income Summary $9,900 10-1 Closing Entries The posting is shown as following: Photocopy Fees Earned Account No. 411 Date Item Post. Ref. Debit Credit Balance Debit Credit 2004 March 10 19 31 31 Adjusting Closing         $9,900 $6,000 3,400 500   $6,000 9,400 9,900 ___ 10-1 Closing Entries Income Summary Account No. 313 Date Item Post. Ref. Debit Credit Balance Debit Credit 2004 March 31 Closing     $9,900   $9,900 10-1 Closing Entries STEP 2 10-1 Closing Entries Step 2. Closing the debit balances from income statement accounts to the income summary. Jan. 31 Income Summary $2,821 Office Wages Expense 1,100 Utility Expense 230 Telephone Expense 120 Rent Expense 400 Insurance Expense 50 10-1 Closing Entries Depreciation Expense, Photocopy Equipment 33 Depreciation Expense, Office Equipment 88 Photocopy Supplies Expense 500 Office Supplies Expense 300