1. Chapter 10
Closing Entries

2. Ninth Step in the Accounting Cycle: Journalizing the Closing Entries
close, or reduce to zero, balances in temporary capital accounts
transfer net income (or net loss) to capital account.

3. Income Summary
accumulates and summarizes revenue and expenses for the period

4. Closing Revenues
debit revenues and credit Income Summary

5. Closing Expenses
credit all expenses and debit Income Summary

6. Closing Income Summary
if net income
debit Income Summary and credit Capital
if net loss
credit Income Summary and debit Capital

7. Closing Withdrawals
credit Withdrawals and debit Capital

9. Post the Closing Entries to Ledger

10. Tenth Step in Accounting Cycle: Post-Closing Trial Balance
list all accounts that have balances and prove equality of debits and credits