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    Closing Journal Entries

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    Mary
    This document provides examples of journal entries to close revenue, expense, retained earnings, and dividends accounts at the end of an accounting period. For revenues, the revenue accounts will be debited to record the closing totals. For expenses, the expense accounts will be credited and income summary debited to close out expenses. The retained earnings account is either debited or credited depending on whether there was net income or loss for the period. Finally, an entry is provided to close out any balance in the dividends account.

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    Download as PDF, TXT or read online from Scribd

    Closing Journal Entries

    Uploaded by

    Mary
    47K views1 page
    This document provides examples of journal entries to close revenue, expense, retained earnings, and dividends accounts at the end of an accounting period. For revenues, the revenue accounts will be debited to record the closing totals. For expenses, the expense accounts will be credited and income summary debited to close out expenses. The retained earnings account is either debited or credited depending on whether there was net income or loss for the period. Finally, an entry is provided to close out any balance in the dividends account.

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    Example of closing journal entries.

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    This document provides examples of journal entries to close revenue, expense, retained earnings, and dividends accounts at the end of an accounting period. For revenues, the revenue accounts will be debited to record the closing totals. For expenses, the expense accounts will be credited and income summary debited to close out expenses. The retained earnings account is either debited or credited depending on whether there was net income or loss for the period. Finally, an entry is provided to close out any balance in the dividends account.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47K views1 page

    Closing Journal Entries

    Uploaded by

    Mary
    This document provides examples of journal entries to close revenue, expense, retained earnings, and dividends accounts at the end of an accounting period. For revenues, the revenue accounts will be debited to record the closing totals. For expenses, the expense accounts will be credited and income summary debited to close out expenses. The retained earnings account is either debited or credited depending on whether there was net income or loss for the period. Finally, an entry is provided to close out any balance in the dividends account.

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    Download as PDF, TXT or read online from Scribd
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    Closing Journal Entries

    Revenues:
    Transaction Description Journal Entry Account Title Debit Credit

    Service Revenue XXX Income Summary XXX Revenues will be debited for the total dollar amount in the account at the end of the fiscal period. To record the closing of revenues

    Expenses:
    Transaction Description Journal Entry Account Title Debit Credit

    Income Summary XXX Salaries Expense XXX Cost of Goods Sold XXX Rent Expense XXX To record the closing of expenses Supplies Expense XXX Repair Expense XXX Depreciation Expense XXX Utilities Expense XXX Each expense account will be credited for the total dollar amount in the account at the end of the fiscal period. The Income summary account will be debited for the total sum of all expense. Expense accounts should be listed highest to lowest in dollar amount.

    Retained Earnings:
    Transaction Description Journal Entry Account Title Debit Credit

    To close a net income into retained earnings

    Income Summary Retained Earnings

    XXX XXX

    Retained Earnings XXX To close a net loss into retained earnings Income Summary XXX The closing entries for revenues and expenses must be posted to the ledger accounts and a balance must be drawn before this journal entry can be made. If the balance in income summary is a credit then use the net income journal entry. If the balance in income summary is a debit then use the net loss journal entry.

    Dividends:
    Transaction Description Journal Entry Account Title Debit Credit

    To close dividends account

    Retained Earnings Dividends

    XXX XXX

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