1. Closing Entries and Post-Closing Trial Balance 结账以及结账后试算平衡表
Chapter 4
Closing Entries and Post-Closing Trial Balance
结账以及结账后试算平衡表

2. Post entries to the ledger accounts. Journalize transactions.
The Accounting Cycle
Post entries to the ledger accounts.
Journalize transactions.
Make end-of-year adjustments.
Prepare trial balance.
Journalize and post closing entries.
Prepare financial statements.
Prepare adjusted trial balance.
Prepare after closing trial balance. 3

3. Permanent/real accounts vs. temporary/nominal accounts
Permanent accounts or real accounts
(永久性账户或实账户）
--- Accounts that remain open all the time until
the business is liquidated.
Temporary accounts or nominal accounts
(临时性账户或虚账户）
--- Accounts that apply to only one accounting
period and that are closed at the end of that
accounting period.

4. Permanent/real accounts vs. temporary/nominal accounts
Assets = Liabilities + Capital + Revenue – Expenses – Drawing
Permanent accounts Temporary accounts
Open Closed

5. Closing the Temporary Equity Accounts
The closing （结账）process gets the temporary/nominal accounts
（临时性/虚账户） ready for the next accounting period. 4

6. Closing entries (结账分录）
--- journal entries made at the end of a fiscal year to reduce the balances of the temporary accounts to zero.
Expense Revenue
Dr Cr Dr Cr
Bal Closing Closing Bal. 100

7. Income Summary (收益总汇/本年利润）
Expenses bal Revenue Bal.
Net loss Net income
(if R< E) (if R > E)

8. Closing the “Temporary” Equity Accounts
The closing process gets the temporary accounts ready for the next accounting period.
Close Revenue accounts to Income Summary.
Close Expense accounts to Income Summary.
Close Income Summary account to Owner’s Capital.
Close Withdrawals to Owner’s Capital. 4

9. Closing Entries for Revenue Accounts

10. Closing Entries for Expense Accounts
Net Income

11. Closing the Income Summary Account
The balance in Income Summary is now zero.

12. Closing the Owner’s Drawing Account

13. Closing procedures summary
Expenses Revenue
Bal Closing Closing Bal.
Income Summary
Expenses Revenue
Closing Net income
Net loss Closing
drawing Capital
Bal. Closing Drawing Bal.
Net loss Net income
Closing procedures summary

14. Journalizing and posting
Journalize and post closing entries.
On page
Compound entry.
Post-closing trial balance on page 95.

15. Assignments
Problem 3 (p 99)
Self-test comprehensive problems I

16. End of Chapter 4 4