Closing Journal Entries-Sole Proprietorship

 

Closing Journal Entries For Sole Proprietor Proprietorship ship or Partnership

Journal Entry DESCRIPTION   DESCRIPTION

 Account Titles Titles

Dr

Cr

REVENUES: CLOSE ALL REVENUES TO INCOME SUMMARY   SUMMARY

Fees Earned

XXX

Income Summary 

XXX 

EXPENSES:

Income Summary

CLOSE ALL EXPENSES TO INCOME SUMMARY   SUMMARY

XXX

Salaries Expense

XXX

Supplies Expense

XXX

Rent Expense

XXX

Insurance Expense

XXX

Interest Expense

XXX

Depreciation Expense

XXX

Options 1 or 2

INCOME S UMMARY: UMMARY: CLOSE THE BALANCE OF THE INCOME SUMMARY ACCOUNT INTO OWNER’S EQUITY WHEN IT IS A NET INCOME (CREDIT BALANCE)  BALANCE) 

Income Summary

CLOSE THE BALANCE OF THE INCOME SUMMARY ACCOUNT INTO OWNER’S EQUITY WHEN IT IS A NET LOSS (DEBIT BALANCE)   BALANCE)

Owner  s Name, Capital 

XXX

Owner  s Name, Capital  ’

’

XXX XXXX

Income Summary

XXX

DIVIDENDS: CLOSE DIVIDENDS INTO OWNER’S EQUITY ACCOUNT.  ACCOUNT.  

MJC Revised 5/2012

Owner’s Name, Capital

XXX

Owner’s Name, Withdrawals

XXX

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