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Accounting Bellwork

Chapter 10. $. Accounting Bellwork. 3 rd Hour: How is the Income Summary account different from other temporary capital accounts?. $. $. $. Chapter 10. $. Accounting Bellwork. It is used only at the end of the fiscal year to summarize the balances from the revenue and expense accounts.

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Accounting Bellwork

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  1. Chapter 10 $ Accounting Bellwork 3rd Hour:How is the Income Summary account different from other temporary capital accounts? $ $ $

  2. Chapter 10 $ Accounting Bellwork • It is used only at the end of the fiscal year to summarize the balances from the revenue and expense accounts. • It does not have a normal balance, which means that it does not have an increase or a decrease side. $ $ $

  3. Plans for today • Grade Homework • Begin Ch10-2 • Assignment

  4. Chapter 10 $ Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance $ • What You’ll Learn • How to record closing entries in the general ledger. The purpose of the Income Summary account. • The purpose of a post-closing trial balance. • How to prepare a post-closing trial balance. $ $

  5. Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.) Chapter 10 $ Why It’s Important A post-closing trial balance verifies that the closing entries are properly recorded in the general ledger and that you are ready to start the next accounting period. $ $ $ • Key Term • post-closing trial balance

  6. Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.) Chapter 10 $ Completing the Eighth Step in the Accounting Cycle: Posting Closing Entries to the General Ledger $ Only difference is that you write the word closing in the description column. $ $

  7. Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.) Chapter 10 $ The Ninth Step in the Accounting Cycle: Preparing a Post-Closing Trial Balance $ • Prepared to make sure total debits equal total credits after the closing entries are posted. • Only accounts with balances are listed (permanent accounts). $ $

  8. Demonstration Problem 10-6

  9. permanent Temporary

  10. Specific date. Allison’s Repair Shop Post-Closing Trial Balance December 31, 200- 101 Cash In Bank 13255.-- 105 Accounts Receivable-C. Smythe 123.-- 110 Accounts Receivable-Bell & Sons 900.-- 115 Computer Equipment 3100.-- 120 Repair Equipment 5500.-- 201 Accounts Payable -Midtown Computers 800.-- 205 Accounts Payable –Nagle Supplies 395.-- 301 A. Degaro, Capital 21683.-- Total 22878.-- 22878.--

  11. Section 2 Posting Closing Entries and Preparing a Post-Closing Trial Balance (con’t.) Chapter 10 $ Check Your Understanding p.246. $ • Thinking Critically 1 & 2 • Problem 10-3 and 10-4 • p248, Understanding Accounting Concepts and Procedures 1-14. • Audit with Alex $ $

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