Post on 13-Dec-2015
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 16-2LESSON 16-2
Recording Closing Entries for Income Statement Accounts
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
THE INCOME SUMMARY ACCOUNTTHE INCOME SUMMARY ACCOUNT page 487
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
CLOSING ENTRY FOR ACCOUNTS WITH CLOSING ENTRY FOR ACCOUNTS WITH CREDIT BALANCESCREDIT BALANCES
1122
page 488
3. Debits to close
44
1. Heading
2. Date 4. Credit to Income Summary
3333
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
CLOSING ENTRY FOR INCOME STATEMENT CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESACCOUNTS WITH DEBIT BALANCES
1122 44
page 489
3. Credits to close
1. Date
2. Account debited
4. Debit amount
33
33
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
SUMMARY OF CLOSING ENTRY FOR SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCESDEBIT BALANCES page 490
Bal. 209,960.00 Closing 209,960.00
(New Bal. zero)
Purchases
Adj. (mdse. inv.) 15,840.00 Closing (credit amounts) 500,253.10
Closing (debit accounts) 404,099.15 (New Bal. 80,313.95)
Income Summary
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
CLOSING ENTRY TO RECORD NET CLOSING ENTRY TO RECORD NET INCOMEINCOME page 491
1122
33
3. Credit Retained Earnings
1. Date
2. Debit Income Summary
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
CLOSING ENTRY FOR DIVIDENDSCLOSING ENTRY FOR DIVIDENDS page 491
3. Credit Dividends
1. Date
2. Debit Retained Earnings
1122
33
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 16-2
COMPLETED CLOSING ENTRIES FOR A COMPLETED CLOSING ENTRIES FOR A CORPORATION RECORDED IN A JOURNALCORPORATION RECORDED IN A JOURNAL page 492