Date:
Chapter 8- Recording Adjusting and Closing Entries for a Service Business
Lesson 2- Recording Closing Entries
Vocabulary:
Permanent Accounts
Temporary Accounts
Closing Entries
Need For Permanent And Temporary Accounts
What is another name for a permanent account?
Where do balances for a new fiscal period come from?
What is another name for temporary accounts?
Where do their balances go at the end?
What are four examples of temporary accounts?
Need For Closing Temporary Accounts
What concept is mentioned in this section?
What is it?
How is a temporary account closed?
Need For The Income Summary Account
What is the Income Summary Account?
What makes it unique?
What if revenue is greater than total expenses?
What if total expenses are greater than revenue?
What are the four closing entries TechKnow records?
Closing Entry For An Income Statement Account With A Credit Balance
What are the four steps for a closing entry for an income statement account with a credit balance?
Closing Entry For Income Statement Accounts With Debit Balances
What are the four steps for a closing and entry for income statement accounts with debit balances.
***This may not clearly be indicated like the others****
In the example in the book, why does the Income Summary T chart have a final credit balance?
Closing Entry To Record Net Income Or Loss And Close The Income Summary Account
What are the three steps to a closing entry that records net income and closes the income summary
account?
What would be different if a net loss was incurred?
Closing Entry For The Owner’s Drawing Account
What do withdraws do to owner’s equity?
Why is the drawing account not closed through the Income Summary?
.
What are the three steps to a closing entry for the Owner’s Drawing Account?