Unformatted text preview: subtotal in the credit column) to the Income Summary account-Credit each account in the income statement debit column, and debit their sum (the subtotal in the debit column) to the Income Summary account.-Transfer the balance of Income Summary to the retained earnings account.-Close the balance of the dividends account to the retained earnings account. Explain the purpose of a post closing trial balance and prepare one-We prepare the post closing trial balance after posting the closing entries. -It contains only real or permanent accounts.-The post closing trial balance tests the debit and credit equality of the general ledger before the next accounting period. Analyze financial statement information for real-life companies...
View Full Document
This note was uploaded on 04/07/2008 for the course ENGL 111 taught by Professor Matt during the Spring '08 term at UConn.
- Spring '08