closing entry

Examples of closing entry in the following topics:

• The Post-Closing Trial Balance

  • A post-closing trial balance is a trial balance taken after the closing entries have been posted.
  • The post-closing trial balance can only be prepared after each closing entry has been posted to the General Ledger.
  • The purpose of closing entries is to transfer the balances of the temporary accounts (expenses, revenues, gains, etc.) to the retained earnings account.
  • After the closing entries are posted, these temporary accounts will have a zero balance.
  • The post-closing trial balance proves debits still equal credits after the closing entries have been made.

• Closing the Cycle

  • Transferring information from temporary accounts to permanent accounts is referred to as closing the books.
  • The process of closing the temporary accounts is often referred to as closing the books.
  • Accountants may perform the closing process monthly or annually.
  • The Dividends account is also closed at the end of the accounting period.
  • The dividends account is closed directly to the Retained Earnings account.

• Overview of Statement Changes and Errors

  • Accounting for a counterbalancing error is made by determining if the books for the current year are closed or not.
  • If the current year books are closed-no entry is necessary if the error has already counterbalanced.
  • If the error has not counterbalanced then an entry must be made to retained earnings.
  • If the error has not counterbalanced, an entry is necessary to adjusted beginning retained earnings and correct the current period.
  • It makes no difference whether the books are closed or still open, a correcting journal entry is necessary.

• Definition of Perfect Competition

  • Monopoly: An industry structure where a single firm produces a product for which there are no close substitutes.
  • There are close substitutes for the product of any given firm, so competitors have slight control over price.
  • Barriers to entry exist.
  • There are no barriers to entry.
  • Agriculture comes close to being perfectly competitive.

• The Accounting Cycle

  • The accounting cycle includes analysis of transactions, transferring journal entries into a general ledger, revenue, and expense closed.
  • This is also known as a book of first entry.
  • These write-ups are known as Journal entries.
  • These Journal entries are then transferred to a Ledger, which is the group of accounts, also known as a book of accounts.
  • Once the entries have all been posted, the Ledger accounts are added up in a process called Balancing.

• Preparing Financial Statements

  • Preparing the adjusted trial balance requires "closing" the book and making the necessary adjusting entries to align the financial records with the true financial activity of the business.
  • Closing the books is simply a matter of ensuring that transactions that take place after the business's financial period are not included in the financial statements.
  • If the books are properly closed, that property will not be included on the balance sheet that is being prepared for the period on December 31st.
  • An adjusting entry is a journal entry made at the end of an accounting period that allocates income and expenditure to the appropriate years.
  • Adjusting entries are generally made in relation to prepaid expenses, prepayments, accruals, estimates and inventory.

• Attachment and Entry of Herpes Simplex

  • The sequential stages of HSV entry are analogous to those of other viruses.
  • At first, complementary receptors on the virus and the cell surface bring the viral and cell membranes into close proximity.
  • A second glycoprotein, glycoprotein D (gD), binds specifically to at least one of three known entry receptors.
  • These include herpesvirus entry mediator (HVEM), nectin-1 and 3-O sulfated heparan sulfate.
  • Afterward, gB interaction with the gH/gL complex creates an entry pore for the viral capsid.

• Introduction to Firms with "Market Power"

  • Many agricultural markets are close to pure competition.
  • The conditions of entry or barriers to entry (BTE) are also important determinants of market power.
  • If there are significant BTE, a firm or firms may be able to sustain above normal profits over time because other firms are prevented from entry to capture the above normal profits.
  • The monopolist produces a good with no close substitutes (increased probability the demand is relatively inelastic) and there are barriers to entry.
  • Firms in monopolistic competition or imperfectly competitive markets are more likely to have limited market power because there are many firms with differentiated products (there are substitutes) and there is relative ease of entry and exit into the market.

• Journalizing

  • How would we record journal entries for each transaction?
  • Each journal entry must have a debit and a credit.
  • How would we record journal entries for each transaction?
  • (these can be combined into a single entry if you choose. )
  • Closing the accounts prepares the ledger for the next accounting period.

• Reversing Entries

  • One such entry, at the end of July, is as follows: Expiration of insurance Insurance expense 200 Prepaid insurance 200 At the beginning of August, if Highland Yoga chooses to adopt reversing entries, such an entry would be as follows: Reversing of insurance 200 Prepaid insurance 200
  • Reversing entries are journal entries made at the beginning of each accounting period.
  • Reversing entries are most often used with accrual-type adjusting entries.
  • This adjusting entry records months A's portion of the interest expense with a journal entry that debits interest expense and credits interest payable.
  • The entry credits interest expense and debits interest payable.