Download Journal Entry To Close Drawing Account Pics. The closing entries are the journal entry form of the statement of retained earnings. The journal entry to close the drawing account at the end of the accounting year will credit eve jones, drawing for $24,000 and will debit eve jones, capital for $24 harold averkamp (cpa, mba) has worked as a university accounting instructor, accountant, and consultant for more than 25 years.

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Example of a journal entry. Every journal entry must generate at least the account name / number of the account being credited is indented. The journal entry to close the drawing account is:

A debit balance in drawing account is closed by transferring it to the capital account.

It is the basis for all the other financial reports prepared by the business. Journal entry examples are presented. If a corporation has more. These journal entries condense your accounts so you can determine your retained earnings, or the amount your business has after paying expenses and dividends.