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Chapter 10. $. Accounting Bellwork. 3 rd Hour: How is the Income Summary account different from other temporary capital accounts?. $. $. $. Chapter 10. $. Accounting Bellwork. It is used only at the end of the fiscal year to summarize the balances from the revenue and expense accounts. - PowerPoint PPT PresentationTRANSCRIPT
Accounting BellworkAccounting Bellwork
3rd Hour: How is the Income Summary account different from other temporary capital accounts?
1. It is used only at the end of the fiscal year to summarize the balances from the revenue and expense accounts.
2. It does not have a normal balance, which means that it does not have an increase or a decrease side.
Accounting BellworkAccounting Bellwork
Plans for today
• Grade Homework
• Begin Ch10-2
• Assignment
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance
What You’ll Learn
How to record closing entries in the general ledger. The purpose of the Income Summary account.
The purpose of a post-closing trial balance.
How to prepare a post-closing trial balance.
What You’ll Learn
How to record closing entries in the general ledger. The purpose of the Income Summary account.
The purpose of a post-closing trial balance.
How to prepare a post-closing trial balance.
Why It’s Important
A post-closing trial balance verifies
that the closing entries are properly
recorded in the general ledger and that
you are ready to start the next
accounting period.
Why It’s Important
A post-closing trial balance verifies
that the closing entries are properly
recorded in the general ledger and that
you are ready to start the next
accounting period.
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Key Term
post-closing trial balance
Key Term
post-closing trial balance
Completing the Eighth Step in the Accounting Cycle: Posting Closing Entries to the General Ledger
Completing the Eighth Step in the Accounting Cycle: Posting Closing Entries to the General Ledger
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Only difference is
that you write the word
closing in the description
column.
The Ninth Step in the Accounting Cycle: Preparing a Post-Closing Trial Balance
The Ninth Step in the Accounting Cycle: Preparing a Post-Closing Trial Balance
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Prepared to make sure total debits equal total credits after the closing entries are posted.
Only accounts with balances are listed (permanent accounts).
Prepared to make sure total debits equal total credits after the closing entries are posted.
Only accounts with balances are listed (permanent accounts).
Demonstration Problem
10-6
permanent
Temporary
Allison’s Repair ShopPost-Closing Trial Balance
December 31, 200-13255.--101 Cash In Bank
Specific date.
123.--105 Accounts Receivable-C. Smythe900.--110 Accounts Receivable-Bell & Sons
3100.--115 Computer Equipment5500.--120 Repair Equipment
800.--201 Accounts Payable -Midtown Computers395.--205 Accounts Payable –Nagle Supplies
21683.--301 A. Degaro, Capital22878.--Total 22878.--
Check Your Understanding p.246.
Check Your Understanding p.246.
•Thinking Critically 1 & 2
•Problem 10-3 and 10-4
•p248, Understanding Accounting
Concepts and Procedures 1-14.
•Audit with Alex
•Thinking Critically 1 & 2
•Problem 10-3 and 10-4
•p248, Understanding Accounting
Concepts and Procedures 1-14.
•Audit with Alex
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)
Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.)