Journal entries at the end of an accounting period that set the stage for the next accounting period by clearing the temporary accounts of their balances, and that summarize a period's revenues and expenses.
Entries recorded at the end of each fiscal period to transfer the balances in the various revenue and expense or expenditure accounts to the permanent equity accounts of an entity.
Journal entries that will be used to prepare any temporary accounts for a new fiscal period.
Journal entries made at the end of the period to return the balance in all nominal accounts to zero and transfer the net income or loss.
Entries that reduce all nominal, or temporary, accounts to a zero balance at the end of each accounting period, transferring their preclosing balances to a permanent balance sheet account.
Journal entries made at the end of the period to return the balance in all accounts to zero and ready the account for the next reporting period.
Journal entries made in relation to the closing of temporary accounts and the transferring of balance to the owners' capital account at the end of the period.
These journal entries are made after the financial statements have been prepared at the end of the accounting year. Most of the closing entries involve the income statement accounts (revenues, expenses, gains, losses, and summary/clearing accounts) whose balances will be transferred to the owner's capital account or the corporation's retained earnings account. A closing entry also transfers the owner's drawing account (a temporary balance sheet account) balance to the owner's capital account. The closing entries will mean that the temporary accounts (income statement accounts and drawing account) will start the new accounting year with zero balances. To Top
