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This session completes the accounting cycle. It walks you through the process of closing the books. This involves some new terms, the post closing trial balance, closing entries, income summary, and reversing entries. Terms you are already familiar with are owners capital, owners withdrawal, as well as income and expense accounts. See the subjects covered in this session, below:
Explains what accounts must be closed and also explains why.
Shows a completed Post Closing Trial Balance and explains it's preparation.
Why and how reversing entries are recorded is explained.