Determine the concept of closing entries, Accounting Basics

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Determine the concept of Closing entries-(REID)

1)  Close Sales account and other income statement accounts with credit balances to Income Summary.

2)  Close each expense account and other income statement accounts with debit balances to Income Summary account.

3)  Close Income summary account to owner's capital account.

4)  Close the Drawing account to capital account.

 


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