Financial Accounting

Learn the toughest concepts covered in your Financial Accounting class with step-by-step video tutorials and practice problems.

Accrual Accounting Concepts

Closing Entries

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At the end of the accounting period (usually, December 31), we must reset our income statement accounts for the new accounting period.

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Introduction to Closing Entries:Temporary and Permanent Accounts

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2m
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Closing Journal Entries

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8m
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Some professors like to ignore the Income Summary account altogether. Instead, all the closing entries just go straight to Retained Earnings. Double check with your class!