Accounting Concepts: M & M Closing Entries |
Objective:
This lesson is a way to teach students the abstract concept of Closing Entries in a more concrete format. Perform the closing entries while simultaneously working with T-accounts on the board.
Supplies Needed:
Preliminary Work:
Prior to the lesson, label the cups and fill with M & M's as follows:
Label |
Number of M & M's |
Color of M & M's |
Sales Credit |
154 |
Brown |
Rent Expense Debit |
34 |
Green |
Misc. Expense Debit |
30 |
Blue |
Utilities Expense Debit |
40 |
Orange |
Income Summary Debit |
Empty |
|
Income Summary Credit |
50 |
Red |
D.S. Capital Debit |
Empty |
|
D.S. Capital Credit |
132 |
Yellow |
D.S. Drawing Debit |
32 |
Blue |
|
|
|
Procedure:
Follow the Closing Entry process and illustrate as follows--
Close Sales to Income Summary
Close each Expense account to Income Summary
Close Income Summary to Capital
Close Drawing to Capital
New Capital