Steps in the Closing Process

There are 4 steps in the closing process. For the accounts below, put a 1, 2, 3, or 4 on the line beside the account to indicate which step in the process it is closed in. Leave it blank if it should not be closed.

___Drawing___ Fares Earned
___Miscellaneous Expense ___Utilities Expense
___Mortgage Note Payable ___Property Taxes Payable
___Notes Receivable___ Rent Expense
___Insurance Expense ___Cash
___Sales Taxes Payable ___Salaries Payable
___Income Summary___ Buildings
___Depreciation Expense ___Fees Earned
___Land___ Accumulated Depreciation
___Salaries Expense___ Accounts Receivable
___Capital___ FICA Taxes Payable
___Delivery Revenue___ Wages Expense
___Accounts Payable___ Interest Income
___Prepaid Insurance ___Interest Income
___Advertising Expense ___Supplies
___Equipment___ Withdrawals




Steps in the Closing Process

[Answer Key]
4
Drawing
1
Fares Earned
2
Miscellaneous Expense
2
Utilities Expense
___
Mortgage Note Payable
___
Property Taxes Payable
___
Notes Receivable
2
Rent Expense
2
Insurance Expense
___
Cash
___
Sales Taxes Payable
___
Salaries Payable
3
Income Summary
___
Buildings
2
Depreciation Expense
1
Fees Earned
___
Land
___
Accumulated Depreciation
3
Salaries Expense
___
Accounts Receivable
___
Capital
___
FICA Taxes Payable
1
Delivery Revenue
2
Wages Expense
___
Accounts Payable
1
Interest Income
___
Prepaid Insurance
___
Owner's Equity
2
Advertising Expense
___
Supplies
___
Equipment
4
Withdrawals