Lesson 14: Closing Entries

What are closing entries, and why are they necessary?
What is the difference between temporary and permanent accounts?
Which accounts need to be closed at the end of the accounting period?
What is the order of closing the accounts?

permanent accounts, temporary accounts, closing entries, income summary account

CTE Business & Finance Technology

C. Accounting Process: Complete the various steps of the accounting cycle in order to prepare financial statements.

17. Complete the closing process.



HS.CTE.2C - 2C. Apply a solution using evidence and reasoning

POG:
I am a LEARNER: Master fundamental skills in core subject areas
I am a THINKER: Critical thinking, independent thinking

The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs.

Description: lesson will focus on the final step in the accounting cycle: closing entries.

Purpose: teach students how to properly execute closing entries for a service business, a crucial step in the accounting cycle. By learning how to close temporary accounts and transfer their balances to the owner’s capital account, students will understand how to reset these accounts for the next fiscal period.

DOK 1
Define temporary, permanent and closing entries
What are closing entries in the accounting cycle
List the steps of the closing cycle for a service business.

DOK 2:
Compare and contrast the difference between temporary and permanent accounts

DOK 4:
analyze and complete a set of financial statement before and after closing entries have been made and critique the differences.

Grasp the importance of closing entries in maintaining the integrity of financial statements and preparing the business for future financial reporting.

Thoughts could be that all accounts need to be closed at the end of the period, including permanent accounts like assets and liabilities

Sampling, modeling, one one instruction, Google classroom or Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students

Guided Notes worksheet

Guiding questions/term assignment

work together/on own assignment application or mastery working papers

Math assignment

Century 21, Accounting,  General Journal, 11th edition, online/paper edition.

Online working papers (Mindtap)

Microsoft Excel software

Online instructional tools