ACME Distribution, Inc.
	December 31, 2021
	Closing Entries
	After completing the financial statements (income statement, statement of stockholders equity and balance sheet) prepare the entries to close the books at the end of 2021 in preparation of beginning the 2022 accounting year. After preparing the closing entries post them to the trial balance in the closing entries columns and then complete the post-closing columns.
1)	Entry to close the revenue and contra-revenue accounts:
	Account description		Debit	Credit
2)	Entry to close the expense accounts:
	Account description		Debit	Credit
3)	Entry to close the income summary account:
	Account description		Debit