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I have closed all my temorary accounts to the income summary but it's a project for school and they want me to put it onto my worksheet. What do I put it under? I have a choice between unadjusted trial balance, adjustments, adjusted trial balance, then it extends to the income statement and balance sheet/ stmt of owners equity. Please help I have no idea which one to put it underneath. Where do I put the income summary? :confused:
Ok, I guess you already closed all your expenses and revenues to the income summary account and did all the journal clossing entries too, after that you need to close the income summary account (because is just a temporary account too) and you do that by debit the incomme summary for the total balance of the account and credit the balance to Retained earnings account, then you need to close you dividends account by credit the balance of the account to leave it on a 0 balance and then you debit it to retained earnings, and finnaly once you have the total balance for the retained earnings you prepared a post-closing trial balance, your post-closing trial balance should include all your assets and liabilities account plus your common stock and the retained earnings account, you don't need to included any of accounts previosly closed, don't forget to do all the necessary entries on your journal too.Quote:
Originally Posted by Tashaho
Unadjusted trial balance , is the one you do before any adjustment to the balance of any account, for example before you calculate the used office supplies during the period.
Adjusted trial balance, is when you do a trial balance after you made any adjustment to any account you used during the period.
Post-Closing trial balance, is the one you do after you have close all your temporaries accounts (normally all your expenses and revenues, and dividend account, incomme summary)
I hope this can help you.
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