Accounting 101 Part 15 Closing Entries

Fifteenth in series of 17 videos describing the essential ideas typically covered in early weeks of a university-level accounting principles course. This explains closing entries.

Category:

Education

Tags:

• Accounting
• bookkeeping
• recordkeeping
• financial
• information
• business
• tutorial
• basics
• lecture
• lectures
• knowledge
• enlightenup

[imnotandrew1]

Man this guy's voice makes me want to fall asleep! It's great that you show the easiest of the closing entries that are typical of the perpetual inventory system (using Cost of Goods Sold). However, what about closing entries that go along with using the periodic inventory system? Now those are a little more difficult and certainly not as simple as these closing entries are. Would you be able to post a video about closing entries associated with the periodic invertory system?

[enlight09]

Sorry about the sleep-inducing voice; coffee is recommended!

Good point about periodic closing entries: I close Purchases as if it were an expense account, leaving only the entries for beginning and ending inventory counts. The trick is to know that ending inventory must be on the ending balance sheet as a debit, so credit Income Summary for that. Beginning inventory needs to be purged from the ledger account with a credit, so debit Income Summary for that & you are done!

Hope that helps!

[gohabs1119]

I actually like his voice. Its like a serious whisper which makes you concentrate because you get the feeling that this is serious stuff, which is his intention by using that tone of voice.

Great stuff, had to replay it a couple of times to fully catch everything but much thanks!

Hopefully I'll pass my test in 2 weeks :P

[w0mblemania]

@parismccullough1 His voice is excellent. As is his manner, and style of teaching.

[NaLDoIzMeH]

Thanks Man! It Helped a Hella Lot! :]

[xxjordie]

Seriously, all the other videos only helped a litle, this helped a lot! I understand it. Thank you so much :)

Also, the voice was fine

[parismccullough1]

This was extremely helpful but your voice is so god damn boring.

[aerothunder104]

perfect

[pinkpeachz]

gosh this was really helpful. thanks!

[Ramadog]

The income summary is something like the income statement right? Shouldnt depreciation be included in this example?

[bobichina]

Very very helpful for me to understand the closing process. THANK YOU!!

[buckoe132]

I am very new to this and trying to just loosely grasp these concepts and then gain a deeper appreciation through repeat viewings. This seems like a very dangerous tool in its simplicity...for people who want to hide bad debts or other dirty assets or something though. Am I thinking clearly on this concept? For anyone who might look at this lol.