CLOSING THE BOOKS LESSON PLAN

 

Teaching Materials

• Lesson - Closing the Books (see below for printable lesson)

• Overhead

• Prepared Examples

Lesson Activity

1. Introduce closing entries

• Stress the need to return account to a zero balance

2. Introduce temporary accounts

• Explain what they are – accumulate a balance for one accounting period
• Give examples

3. Discuss Permanent accounts

• Explain that these account balances carry over accounting periods
• Mention retained earnings as the fourth type of permanent account

4. Discuss retained earnings

• Relate concept to net income
• Discuss placement on the Balance Sheet
• Use a detailed example to demonstrate

5. Present how to prepare a Statement of Retained Earnings

• Continue with detailed example to illustrate

6. Discuss Closing entries

• Explain the Income Summary account
• Present closing entries for revenues, expenses, and income summary using detailed examples

7. Next steps

• Talk about the Post Closing Trial Balance

 

 

 

Lesson Printable Materials - Worksheets

Print out the teaching lesson pages and exercise worksheets for use with this lesson:

 

CLOSING THE BOOKS LESSON
	Closing the Books * This is a lesson and worksheet on closing the Books.
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