Sections:

Posting Closing Entries and Preparing a Post-closing Trial Balance, Page 3

Icon for Objectives Posting Closing Entries and Preparing a Post-closing Trial Balance: Objectives

After you have completed this section, you will be able to:

  1. Explain the purpose of the Income Summary Account. 
  2. Explain the relationship between the Income Summary Account and the Capital Account. 
  3. Analyze and journalize closing entries.
  4. Define the accounting terms introduced in this section.