Accounting

Anonymous
timer Asked: Apr 16th, 2014
account_balance_wallet $5

Question Description

What are the four closing journal entries? In your opinion, why are these necessary

Tutor Answer

slh9642
School: UT Austin

1.Close the income statement accounts with credit balances 

2.Close the income statement accounts with debit balances

3.Close income summary to the owner's capital account or, in corporations, to the retained earnings account

4.Close the owner's drawing account to the owner's capital account

They are necessary because closing entries made in the accounting cycle bring the income statement accounts to zero so that the new reporting period will start with zero balances.

flag Report DMCA
Review

Anonymous
Top quality work from this guy! I'll be back!

Similar Questions
Hot Questions
Related Tags
Study Guides

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors