2.6 - Today's Topic Financial Accounting Information for...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Today’s Topic PLEASE TURN OFF CELL PHONES Financial Accounting Information for investor decision-making in accountability situations This class will: Describe another feature (= closing entry) of the measurement  application (= accounting system)  Describe some uses of financial accounting by investors
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fig. 80 THE CLOSING PROCESS (I) Before the accounting system can begin the next year, Balances must be zero in temporary accounts”: Income Statement Accounts » Revenue Accounts » Expense Accounts Dividend Account
Background image of page 2
Fig. 81 THE CLOSING PROCESS (II) This is the Closing Process Balances are transferred to retained earnings This is an Equity Account
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Fig. 82 THE CLOSING PROCESS (III) Balances are transferred and made zero by: Calculating the ending balance in each temporary account If the temporary account ending balance is a debit, enter a credit for the ending balance in the account. If the temporary account ending balance is a credit, enter a debit for the ending balance in the account. Enter the amount needed to make debits equal credits in the Retained Earnings Account.
Background image of page 4
Fig. 83 General Ledger Accounts = + Bal. 51,000 Bal. 400,000
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 15

2.6 - Today's Topic Financial Accounting Information for...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online