ACO01 - Lecture 5 - Completing the Accounting Cycle [Compatibility Mode]

Close expense accounts to income summary depreciation

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Unformatted text preview: nse 1,610 1,610 - S upplies Expense 1,050 1,050 - I nsurance Expense 100 100 - Utilities Expense 230 230 - Income Summary 375 7,850 1,610 300 100 1,000 1,050 230 3,785 Net Income Income Summary 375 7,850 1,610 300 100 1,000 1,050 230 3,785 10 Close Income Summary to Retained Earnings GENERAL JOURNAL Date Description Dec. 31 Income Summary Page 34 PR Debit Credit 3,785 Retained Earnings 3,785 Now, let’s look at the ledger accounts after posting this closing entry. Close Income Summary to Retained Earnings Retained Earnings 600 3,785 I ncome Summary 375 7,850 1,610 300 100 1,000 1,050 230 3,785 - 3,185 Learning Objective Explain and prepare a postclosing trial balance. 33 11 Post-Closing Trial Balance List of permanent accounts and their balances after posting closing entries. Total debits and credits must be equal. 34 Learning Objective Explain and prepare a classified balance sheet. 36 12 Classified Balance Sheet Typical Categories in a Classified Balance Sheet Assets Current assets Noncurrent assets Long-term investments Plant a...
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