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Closing Entries Example | Revenue → Income Summary → Retained Earnings
Here's how closing entries work for Bright Ideas Limited – 3 simple steps: 📝 STEP 1 – Close all revenue accounts to Income Summary Dr Consulting Revenue 3,500 Cr Income Summary 3,500 Revenue account is now $0. 📝 STEP 2 – Close all expense accounts to Income Summary Dr Income Summary 1,400 Cr Wages Expense 800 Cr Rent Expense 100 Cr ...
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