Journalize the closing entries required to close out the Income Statement accounts.

Select Generate Closing Entries under the Tasks menu on the top menu bar. When the dialog box appears, review the proposed entries and select Yes to confirm generating the closing journal entries. Review the closing entries for correctness, and then select the Post button to post them to the General Ledger.

Note: This general ledger system uses four entries and the temporary account Income Summary when generating closing entries. The first entry closes revenue trolncome Summary; the second entry closes expenses to Income Summary; the third entry closes Income Summary to Retained Earnings; and the last entry closes Dividends to Retained Earnings. This differs from the text, which records two entries; closing all income statement accounts and then dividends direct to Retained Earnings.