Close

Close temporary accounts for "$ARGUMENTS". Zero out revenue, expense, and dividend accounts by transferring their balances to retained earnings.

Prerequisites

Read .metapowers/accounting/$ARGUMENTS/07-statements.md for the financial statements and .metapowers/accounting/$ARGUMENTS/06-adjusted-balance.md for the adjusted trial balance.

Process

1. Close revenue accounts:

   • Debit each revenue account for its full balance
   • Credit Income Summary for the total revenue
   • All revenue accounts should now have zero balances

2. Close expense accounts:

   • Credit each expense account for its full balance
   • Debit Income Summary for the total expenses
   • All expense accounts should now have zero balances

3. Close Income Summary:

   • If Income Summary has a credit balance (net income): debit Income Summary, credit Retained Earnings
   • If Income Summary has a debit balance (net loss): credit Income Summary, debit Retained Earnings
   • Income Summary should now have a zero balance

4. Close dividends/draws:

   • Credit Dividends (or Owner's Draws) for its full balance
   • Debit Retained Earnings
   • Dividends account should now have a zero balance

5. Prepare post-closing trial balance:

   • List only permanent accounts (assets, liabilities, equity)
   • Verify debits equal credits
   • These balances become the opening balances for the next period

6. Write the artifact to .metapowers/accounting/$ARGUMENTS/08-close.md with sections:

   • Closing Journal Entries — all closing entries with accounts and amounts
   • Post-Closing Trial Balance — permanent accounts only
   • Period Summary — net income transferred, dividends closed, ending retained earnings

Output

The closing entries written to .metapowers/accounting/$ARGUMENTS/08-close.md. Present a summary highlighting:

• Net income transferred to retained earnings
• Ending retained earnings balance
• Confirmation that all temporary accounts are zeroed