CHAPTER 6:

COMPLETING THE ACCOUNTING CYCLE

 ADJUSTMENTS ARE JOURNALIZED
AND POSTED
• Adjustment process is a key element of accrual basis
accounting.
• It can be found in worksheets.
 CLOSING ENTRIES ARE JOURNALIZED
AND POSTED
• Temporary accounts like income, expense and
withdrawal accounts are said to be closed.
• A summary account is used to close the income and
expense accounts.
CLOSE THE INCOME ACCOUNTS
CLOSE THE EXPENSE ACCOUNTS
CLOSE THE INCOME SUMMARY
ACCOUNT
CLOSE THE WITHDRAWAL ACCOUNT
 PREPARATION OF A POST-CLOSING
TRIAL BALANCE
• Aims to verify the accuracy of the accounting
cycle.