Closing Journal Entry Homework Help

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Different accounts in closing entries
Closing entries are also known as closing journal entries. Such entries are made at the end of the accounting period to zero out temporary accounts and then transfer the balance to permanent accounts. The temporary accounts get closed or can be reset at the end of financial year. This is known as closing the books.

1. Temporary accounts:
When you opt for closing journal entry homework help, you will get to know about the temporary accounts that are also the income statement accounts and is used to track different accounting activity during the accounting period. In the case of revenue account, it usually records the amount of revenue that is generated during the accounting period.

2. Permanent accounts:
It is the balance sheet account that helps to keep track of activities that usually stays for alonger duration than accounting period. For example, vehicle account is known to be fixed asset account that is recorded to balance. As the vehicle will offer benefits to the company so, it can be considered as a permanent account.

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Processes involved in closing entry
1. The close revenue accounts should be in income summary that is done by debiting revenue and crediting the income summary

2. Closing expense is accounted to income summary that is obtained by debiting income summary and crediting expenses

3. Close income summary is in retained earnings that can be done by debiting the income summary and crediting retained earnings

4. Close dividends to the retained earnings

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