To establish this break means closing the books, and to facilitate that closing, CPAs need to record a closing entry for all temporary accounts. Revenue, expenses and dividends all need to move to the ...

The next step involves closing entries. This process closes out the revenue, expense, drawing or dividend accounts. Each account is closed to a special account called income summary. For example ...

The breakout finally took place in 1982, and the Dow never dropped below 1,000 again. 1  This phenomenon is covered up somewhat by adding dividends to obtain the adjusted closing prices.