Accounting

Accounting

Grade 11

Video

https://www.investopedia.com/terms/c/closing-entry.asp

Chapter 20.1: Journalizing closing entries

Pages 591-595

Objectives

• Calculate the closing entries

• Journalizing Closing entries

• Evaluate the closing entries

Open Ended

Refer to the work sheet in Figure 20-1. Tell them to suppose the Income Statement Credit column contained the following entries for Sales, Purchases Discounts and Purchases Returns and Allowances: $120,562, $483, and $679.

1.To close these temporary accounts, will Income Summary be debited or credited?

2. For what amount?

Multiple Choice

Are temporary accounts with credit balances debited or credited to Income Summary?

• Credited

• Debited

Open Ended

Prepare the closing journal entries for the question given.

Multiple Choice

Identify the effect of the closing entries on the Retained Earnings account

• The second closing entry increased Retained Earnings by $29,318.

• The first closing entry increased Retained Earnings by $29,318.

• The third closing entry increased Retained Earnings by $29,318.

Open Ended

Find the error in the given closing entry and correct it.

Fill in the Blanks

Why is the purchase discount credited?

Poll

How well did you understand the lesson?

• 1

• 2

• 3

• 3