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The Steps of closing entries

The Steps of closing entries - income summary XX Retained...

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The Steps of closing entries: 1. Close all revenue accounts to income summary account Revenue XX Income Summary XX 2. Close all expense accounts to income summary account Income Summary XX Expense XX (May end up in a compound journal entry) 3.Close Income summary account to retained earnings account a. If total Revenue > totol expenses (Net Income)
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Unformatted text preview: income summary XX Retained Earnings XX B . If total Revenue < total expenses (net loss) Retained Earnings XX Income Summary XX 4. Close Dividend account to Retained Earnings account Retained Earnings XX Dividends XX ****All entries (general, adjusting, and closing) entries all go in the same journal...
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