In closing temporary accounts: - Revenue account balances are transferred to an account called Income Summary Account (sometimes profit or loss summary). - Expense account balances are also transferred to the Income Summary Account. - The balance of the Income Summary (net income or net loss) is transferred to the owner's capital account - The balance of the owner's drawing account is transferred to the owner's capital account. 9. Post-closing trial balance A Post-Closing Trial Balance shows the accounts that are permanent or real. These are the accounts that can be seen in your balance sheet. The post-dosing trial balance is prepared to test if the debit balances equal the credit balances after closing entries are considered. PART 4: ACTIVITY/ APPLICATION Make a diagram showing the difference between the Balance Sheet, Income Statements, and Statement of Cash Flow. PART 5: QUIZZES/ EVALUATION Prepare a balance sheet using the following (scrambled) accounts: Accounts Payable Accrued Expenses Accumulated Depreciation Additional Paid-in Capital Allowance for Doubtful Accounts Cash Common Stock (PHPO.20 par) Current Portion of LT. Debt Gross Accounts Receivable Gross Fixed Assets Inventories Long-Term Debt Net Accounts Receivable Net Fixed Assets Retained Earnings Short-Term Bank Loan (Notes Payable) 39,000 8,000 51,000 86,000 2,000 23,000 45,000 6,000 40,000 486,000 54,000 210,000 38,000 435,000 138,000 18,000