Closing Journal Entries For Sole Proprietorship or Partnership

Journal Entry DESCRIPTION REVENUES: CLOSE ALL REVENUES TO INCOME SUMMARY EXPENSES: Account Titles Dr Cr

Fees Earned Income Summary

XXX XXX

Income Summary Salaries Expense Supplies Expense

CLOSE ALL EXPENSES TO INCOME SUMMARY

XXX XXX XXX XXX XXX XXX XXX

Rent Expense Insurance Expense Interest Expense Depreciation Expense

INCOME SUMMARY: CLOSE THE BALANCE OF THE INCOME SUMMARY ACCOUNT INTO OWNERS EQUITY WHEN IT IS A NET INCOME (CREDIT BALANCE) CLOSE THE BALANCE OF THE INCOME SUMMARY ACCOUNT INTO OWNERS EQUITY WHEN IT IS A NET LOSS (DEBIT BALANCE) DIVIDENDS: CLOSE DIVIDENDS INTO OWNERS EQUITY ACCOUNT. Income Summary

Options 1 or 2 XXX XXX XXXX XXX

Owners Name, Capital Owners Name, Capital

Income Summary

Owners Name, Capital Owners Name, Withdrawals

XXX XXX

MJC Revised 5/2012

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