LESSON 8 2 Recording Closing Entries CENTURY 21

LESSON 8 -2 Recording Closing Entries CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 -2

2 NEED FOR THE INCOME SUMMARY ACCOUNT CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 207 LESSON 8 -2

3 CLOSING ENTRY FOR AN INCOME STATEMENT page 208 ACCOUNT WITH A CREDIT BALANCE 2 1 3 4 1. Write the heading. 2. Write the date. 3. Write the title of the account debited. Record the debit amount. 4. Write the title of the account credited. Record the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 -2

4 CLOSING ENTRY FOR INCOME STATEMENT ACCOUNTS WITH DEBIT BALANCES 1. 2. 3. 4. 1 2 page 209 Date Income Summary Credit Debit amount 4 3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 -2

CLOSING ENTRY TO RECORD NET INCOME OR LOSS AND CLOSE THE INCOME SUMMARY ACCOUNT 5 page 210 1. Date 2. Debit 3. Credit 1 2 3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 -2

6 CLOSING ENTRY FOR THE OWNER’S DRAWING ACCOUNT page 211 1. Date 2. Debit 3. Credit 1 2 3 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 -2

7 TERMS REVIEW page 212 n permanent accounts n temporary accounts n closing entries CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8 -2