What Accounting Journal Entries do you close?
does any one know what journal entries have to be closed at year end?
- Jack CLv 41 decade agoFavorite Answer
You don't close journal entries, but you do close all of the temporary or nominal accounts at period end, in this order:
1) Close (debit) all revenue accounts to the Income Summary account
2) Close (credit) all expense accounts to the Income Summary account
3) Close (debit) all gain accounts to the Income Summary account
4) Close (credit) all loss accounts to the Income Summary account
5) Close (debit or credit to zero out) the Income Summary Account to Owner's Equity (or Retained Earnings if a corporation)
6) Close (credit) the Drawing account to Owner's EquitySource(s): Licensed CPA with 24 years experience that is a current college accounting instructor
- ?Lv 44 years ago
You will need to have a month end balance for the account, but not "close it". The total of all account balances will basically give you your net income before tax. The only support you may need (for example cost of good sold) may be the subsidiary ledger that the amount comes from....Not sure if this is what you are looking for....
- Anonymous1 decade ago
ummm, all of them I think.