Temporary accounts: Temporary accounts are closed at the end of each accounting period and include income statement, dividends, and income summary accounts Income Summary: The Income Summary account is an intermediary between revenues and expenses, and the Retained Earnings account.

Recording closing entries: There are four closing entries; closing revenues to income summary, closing expenses to income summary, closing income summary to retained earnings, and close dividends to retained earnings Closing entries: Closing entries prepare a company for the next period and zero out balance in temporary accounts

income summary — intermediary between revenues and expenses, and the Retained Earnings account, storing all the closing information for revenues and expenses, resulting in a “summary” of income…. Income Summary account — an intermediary between revenues and expenses, and the Retained Earnings account. closing — returning the account to a zero balance. classified balance sheet — presents information on your balance sheet in a more informative structure, where asset and liability categories are divided into smaller, more detailed sections.