Accounting Cycle Step 8: Closing Entries to Retained Earnings

The 8th step in the accounting cycle is closing temporary accounts (Revenues, Expenses, and Dividends) in order to properly adjust the Retained Earnings account and prepare the temporary accounts for the next period.
@ProfAlldredge
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[danman]

Good delivery style. I am an accounting student in Ontario. Keep it slow and steady I say.

[RaphaelDartigues]

When expenses are larger than revenues is it a "retained earnings" debit or do you need to credit a specific account like "retained deficits" or "accumulated deficit"?

[r.s]

Damn you really helped me out with this video. Thanks. That´s a good delivery style🎉

[escobar]

I just want to tell you that you have helped me tremendously, you missed out some details but what you did very well in was explain the bigger picture. With this i can now go back and understand why I am doing certain things in each step and what it ultimately does and leads up to. The details you missed out on are no problem now to me cause you made m e understand the whole picture of the Accounting Cycle. I have an exam this upcoming Monday so i am glad I ran into your channel. Thank you Sir, keep up the excellent work it is very well appreciated!

[artness]

Well explained, thank you so much sir! :)

[brianemilio]

Well Just one thing, How do you post balances carried forward for the following, 1. Accumulated loss and 2. Retaining earnings in the financial statements. Appreciate your explanation on this. Thank you

[ndsam]

thanks for the easiest way that you use to explain this subject

[TLTSree]

Hi Prof Alldredge . Could you please help me with the below question?
As far as my understanding is, dividends are debited ones that amount is distributed to stake holders (that is increase in dividend amount). So when we clear dividend account and post the entry into retained earning, that will debiting the retained earnings (that is decrease in retained earnings) .