Four closing entries, posted and proved: this AC114 Unit 8 closing entries problem ends in a post-closing trial balance that lists only balance sheet accounts. Searches like "ac 114 unit 8 assignment example", "ac114 unit 8 sample" and "ac114 unit 8 example" land here.
What a finished AC114 Unit 8 closing entries problem looks like
Page one holds the four closing entries in general journal form, dated the last day of the period and labeled closing entries above the first. Revenues are debited and the summary account credited; expenses are credited and the summary debited; the summary account's balance, equal to net income, moves to retained earnings; dividends close directly to retained earnings. Page two shows the effect in the ledger: each temporary account posted with the word closing in the item column and its balance falling to zero, and the income summary account opening and closing within the same day. Page three is the post-closing trial balance, headed with a single date, listing only assets, liabilities and equity. Its retained earnings figure matches the closing figure on the Unit 7 statement.
How a AC114 Unit 8 example is structured
The four entries follow the conventional order because each depends on the one before: the summary account cannot be closed until both revenues and expenses have been moved into it. A one-line check between the second and third entries confirms that the summary balance equals net income from the income statement, which catches most errors before they reach retained earnings. Dividends close last and bypass the summary account entirely, since they are not part of income. Ledger postings are shown for every temporary account, not just one, so a grader can see that each finished at zero. Permanent accounts are untouched. The post-closing trial balance is extracted from the updated ledger and lists accounts in chart order. Contra accounts such as accumulated depreciation remain on it, which surprises some readers and is correct.
Revenues into the summary
Each revenue account debited for its balance, the income summary credited for the total, dated the final day of the period.
Expenses into the summary
Every expense credited to zero and the summary debited for the combined amount, leaving a balance equal to net income.
The summary into retained earnings
The income summary closed for exactly net income, a figure checked against the income statement before the entry is written.
Dividends, closed directly
Dividends move straight to retained earnings without passing through the summary, because distributing profit is not part of earning it.
Post-closing trial balance
Assets, liabilities and equity only, in chart order, with accumulated depreciation still present and retained earnings matching the Unit 7 statement.
Where marks go in AC114 Unit 8
Closing dividends through the income summary is the classic error in this unit, and graders mark it firmly because the summary's balance then no longer equals net income. Leaving one temporary account open, often a small expense, is the next loss; it shows up at once as an unexpected line on the post-closing trial balance. Closing a permanent account, unearned revenue or accumulated depreciation most often, is marked wrong and signals a classification problem from earlier units. An income summary closed for an amount that differs from net income costs points and usually indicates an expense missed in the second entry. Post-closing trial balances that still list revenue or expense accounts lose points for the list and again for the unclosed accounts behind it. Missing dates or the closing label draw small deductions.
Get a AC114 Unit 8 example written to your instructions
Share the adjusted balances or statements your AC114 section is closing from, alongside the Unit 8 instructions and rubric, and the entries, postings and post-closing trial balance are built on those figures, with the net income check shown between the second and third entries. A first custom sample costs nothing and is returned in 24-48h.
AC114 Unit 8 questions, answered
Why not close dividends through the income summary?
Because the summary account exists to measure net income, and dividends are not part of income. Routing them through it would leave the summary with a balance that no longer matches the income statement, and the third closing entry would move the wrong amount. Closing dividends directly to retained earnings keeps the income measurement clean and the entries easy to check.
Does the income summary account appear on the post-closing trial balance?
No. It is created and emptied during closing, so its balance is zero by the time the post-closing trial balance is prepared. If it appears with a balance, one of the four entries moved the wrong amount, most often because an expense was left out of the second entry or a revenue out of the first.
Which accounts should remain after closing?
Only the permanent ones: assets, liabilities and equity accounts such as common stock and retained earnings. Contra accounts belonging to those categories, accumulated depreciation especially, also remain because they carry forward. Revenues, expenses and dividends reset to zero so the next period starts measuring from nothing, which is the purpose of the whole step.