CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 16-2 Recording Closing Entries for Income Statement Accounts

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 16-2 THE INCOME SUMMARY ACCOUNT page 487

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 16-2 CLOSING ENTRY FOR ACCOUNTS WITH CREDIT BALANCES 1 2 page Debits to close 4 1.Heading 2.Date4.Credit to Income Summary 33

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 16-2 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1 24 page Credits to close 1.Date 2.Account debited 4.Debit amount 3 3

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 16-2 SUMMARY OF CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES page 490 Bal.209,960.00Closing 209, (New Bal. zero) Purchases Adj. (mdse. inv.)15,840.00Closing (credit amounts)500, Closing (debit accounts)404,099.15(New Bal.80,313.95) Income Summary

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 16-2 CLOSING ENTRY TO RECORD NET INCOME page Credit Retained Earnings 1.Date 2.Debit Income Summary

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 16-2 CLOSING ENTRY FOR DIVIDENDS page Credit Dividends 1.Date 2.Debit Retained Earnings 1 2 3

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 16-2 COMPLETED CLOSING ENTRIES FOR A CORPORATION RECORDED IN A JOURNAL page 492