What Revenue Accounts Do You Close

Close all expense accounts to income summary.

What revenue accounts do you close. If there is 36 500 in the service revenue account and 600 in the interest revenue account your total revenue would be 37 100 for the accounting period. To make them zero we want to decrease the balance or do the opposite. For example you may have accounts titled service revenue and interest revenue both of these accounts are temporary revenue accounts. Close means to make the balance zero.

You cannot just do an entry to expenses. Closing revenue expense and dividend accounts general journal entries. The income summary account is temporary. We see from the adjusted trial balance that our revenue accounts have a credit balance.

It is used to close income and expenses. It has a credit balance of 9 850. You can however close all the expense accounts in one entry. To close that we debit service revenue for the full amount and credit income summary for the same.

As you will see later income summary is eventually closed to capital. You must close each account.