Bookkeeping

To close expenses, we simply credit the expense accounts and debit Income Summary. In addition, if the accounting system uses subledgers, it must close out each subledger for the month prior to closing the general ledger which of the following accounts will be debited in the closing entry at the …

Investors contribute their share of paid-in capital as stockholders, which is the basic source of total stockholders’ equity. The amount of paid-in capital from an investor is a factor in determining his/her ownership percentage. These earnings, reported as part of the income statement, accumulate and grow larger over time. Stockholders’ …