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

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

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