Hello in this lecture, we’re going to talk about the closing process step three of the four step closing process, which will include the close of the income summary to the capital account. Remember that our objective is to close out all the temporary accounts, which are all the accounts below capital, including drawers, and the income statement accounts of revenue and expenses. So we want the adjusted trial balance to be converted to the post, post closing trial balance, which means that everything from capital on down will be zero. The way we do that is the four steps and that includes step one we did in a prior video closeout income to the income summary. Step two was to close out expenses to the income summary. Step three is what we’re going to do now close out the income summary now having net income in it to the capital account, then we’re finally going to close out the draws to the capital account.
