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.

Poll

How well did you understand the lesson?

• 1

• 2

• 3

• 3