Question

fill in the blank question
summarize the closing process by listing the closing entries in the order in which they would occur at the end of the accounting period. step 1: close income statement (credit/debit) balance accounts. step 2: close income statement (credit/debit) balance accounts. step 3: close income (summary/dividends) . step 4: close (income summary/dividends)

Explanation:

1. Step 1: Revenue accounts (credit balance income statement accounts) are closed first by debiting the revenue and crediting Income Summary.
2. Step 2: Expense accounts (debit balance income statement accounts) are closed next by crediting the expense and debiting Income Summary.
3. Step 3: The Income Summary account (which summarizes net income/loss) is closed to Retained Earnings.
4. Step 4: Finally, the Dividends account (a temporary equity account) is closed to Retained Earnings.

Answer:

Step 1: credit; Step 2: debit; Step 3: summary; Step 4: dividends