1. CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE
Lesson 9-2
CLOSING ENTRY FOR AN INCOME STATEMENT ACCOUNT WITH A CREDIT BALANCE
(Debit to close) 3 1 2 4
1. Write the heading.
2. Write the date.
3. Record the debit.
4. Record the credit.
Lesson 9-2, page 199

2. CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES
1. Write the date.
2. Income Summary.
(Credit to close) 3
3. Record the credit.
4. Record the debit. 4 2 1
Lesson 9-2, page 200

3. CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT
(Capital: credit to record net income)
(Income Summary: debit to close) 2 1 3
1. Write the date.
2. Record the debit.
3. Record the credit.
Lesson 9-2, page 201

4. CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT
(Capital: credit to close) 2 1 3
1. Write the date.
2. Record the debit.
3. Record the credit.
Lesson 9-2, page 202

5. TERMS REVIEW permanent accounts temporary accounts closing entries
Lesson 9-2, page 203