Chapter 10 Accounting Ch.10...Have students be t-accounts. Give students index cards that tell them what accounts they are and what t-accounts they are.

 Journal entries made to update general ledger accounts at the end of the fiscal period.  Recorded on next journal page following the page on which you recorded the last daily transactions for the month.  Entries are recorded in General Debit and General Credit columns.

 Entries used to prepare temporary accounts for a new fiscal period.  Permanent Accounts: accounts used to accumulate information from one fiscal period to the next. ◦ Also called real accounts ◦ Assets, liabilities, capital ◦ The ending balances for one fiscal period are the beginning account balances for the next fiscal period.

 Temporary Accounts: accounts used to accumulate information until it is transferred to the owner’s capital account. ◦ Revenue, expenses, drawing, income summary ◦ Shows changes in the owner’s capital for a single fiscal period ◦ Ending balances will be zero

 Used to summarize the closing entries for revenue and expenses  DOES NOT have a normal balance  Balance is determine by net income or net loss ◦ If Revenue>Expenses: Net Income: Credit Balance ◦ If Revenue<Expenses: Net Loss: Debit Balance  Temporary account

REID  Revenue  Expenses  Income Summary  Drawing

 Revenue ◦ Debit Sales ◦ Credit Income Summary  Expenses ◦ Debit Income Summary ◦ Credit Expenses

 Income Summary (assume net income) ◦ Debit Income Summary ◦ Credit Capital  Drawing ◦ Debit Capital ◦ Credit Drawing