Accounting 1
Lesson Plans

Strand 6

Students will demonstrate how to close an accounting period.

Standard 3

Describe the difference between a trial balance and a post-closing trial balance.

• Account -Recording Adjusting/Close Entries, Partnership
  Introduction of adjusting and closing entries for a partnership set up as a merchandising business. Introduction of the adjustments to be made to merchandise inventory. Review of the adjustments to be made to supplies and prepaid insurance. Introduction of how to journalize and post the adjusting entries to their appropriate accounts. Introduction of the permanent accounts and closing accounts and the need for closing out temporary accounts at the end of a fiscal period. Introduction of the closing accounts and their related accounts (Revenue/Sales - Income Summary, Expenses - Income Summary, Share of Net Income/Net Loss - Capital Account, Share of Partners Drawing Accounts Amounts - Capital Account.). Introduction of how to journalize and post the closing entries to their appropriate accounts. Review how to prepare a Post Closing Trial Balance at the end of a fiscal period.
• Account-Recording Adjusting/Close Entries(Service Bus.)
  Introduction of adjusting and closing entries for a proprietorship set up as a service business. Remind students of the adjustments made to supplies and prepaid insurance. Introduction of how to journalize and post the adjusting entries to their appropriate general ledger accounts. Introduction of permanent accounts, temporary accounts and the need for closing out temporary accounts at the end of a fiscal period. Introduction of the closing accounts and their related accounts (Revenue/Sales - Income Summary, Expenses - Income Summary, Net Income/Net Loss - Capital Account, Drawing Account - Capital Account). Introduction of what a post closing trial balance is and why it is prepared at the end of a fiscal period. Introduction of how to prepare post closing trial balance, the different sections of a post closing trial balance, the accounts to be included on a post closing trial balance and how to use the post closing trial balance amounts to help a business know its financial position.

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