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    JSamuels's Avatar
    JSamuels Posts: 4, Reputation: 1
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    #1

    Apr 21, 2010, 02:21 PM
    Which entry properly closes a temporary account?
    Which entries properly closes a temporary account?

    Debit Dividends; credit Retained earnings;
    Debit Income Summary;credit Rent Expense;
    Debit Accumulated Depreciation; debit Income Summary; or
    Debit Income Summary; credit Service Revenue
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Apr 22, 2010, 12:26 PM

    Expenses and dividends have a normal Debit Balance, While Revenues and Retained Earnings have a normal credit Balance.

    To close these accounts you credit the Expenses and Dividends to the Income Summary account and Debit Revenues to the Income Summary Account.

    Next you close out your Income Summary Account to Retained Earnings. If you have a Crebit balance you would Debit Income summary for the balance and Credit Retained Earnings for the amount

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