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CLOSING ACCOUNTING BOOKS LESSON PLAN RELATIONSHIP BOOKKEEPING ONLINE FINANCIAL BASICS CORE HIGH SCHOOL BUSINESS TEACHING LEARNING FORMAT SAMPLE EXAMPLE HELP FORMAL WORK CAREERS SAMPLE STUDENTS FREE PRACTICE TEACHER BUSINESS BOOKKEEPING LIFE SKILLS

 

 

 

Students learn about closing the books.

 

 

ACCOUNTING BASICS:

 

CLOSING THE BOOKS

Topic:  Preparing Closing Entries

Concept:  Understanding how and why the books must be closed every period and learning the exact steps to do so.

Objectives

  • Understand what a closing entry is
  • Understand the Retained Earnings account
  • Understand the purpose of temporary accounts
  • Understand the purpose of the Income Summary account and its relationship to net income and retained earnings.
  • Know how to prepare closing entries

Suggested Grades:

Seventh Grade - Eighth Grade - Ninth Grade - Tenth Grade - Eleventh Grade - Twelfth Grade - Adult Education

 
 

 

CLOSING THE BOOKS LESSON PLAN

 

Teaching Materials

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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