Accounting Cycle Step 8: Closing Entries to Income Summary for Corporations

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.
This video shows a less common way of doing that. Some older textbooks show the use of an interim account, Income Summary, before closing to Retained Earnings. If your book use that, then this is the video for you.
@ProfAlldredge
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[liangzhendaviddai]

Hello Dave, some number mistake happens at time03:38. Total expense is $1300; however, the income summary is $2000. But i this u forgot to include wages expense which is $2000. the total number should be $3300

[srinibasroutray]

What about gains and losses on I/S ? They are part of Net income but don't close to retained earnings by closing entries. How retained earnings account matches in those case.

[mohamedlukman]

Thank you Very Much, Sir. Please could you provide us calculations about corporate tax (Deferred Tax Asset and Liability).

[charitycaperida]

Thank you so much for sharing this presentation. It helps a lot with my assessment task in ACCG 100...

[soulcake]

"Its like magic, only real...."