Please Teache Me!!?

I do not understand how these accounts put into closing entries and post-closing trial balance.

Cash$14,000 (debit)
Office supplies1,300 (debit)
Prepaid insurance2,050(debit)
Equipment50,000 (debit)
Accumulated depreciation, Equipment5,000(credit)
Accounts payable$14,000 (credit)
Wages payable600 (credit)
C.Karise, Capital30,000 (credit)
C.Karise, Withdrawals16,000 (debit)
Repair fees earned90,950 (credit)
Depreciation expense, Equipment5,000 (debit)
Wages expense37,500 (debit)
Insurance expense800 (debit)
Rent expense10,600 (debit)
Office supplies expense3,600 (debit)
Utilities expense2,700 (debit)
Income summary

Totals$143,550 $143,550

Closing entries: Total 197,900
Post closing trial balance: total 67,350

What you need to understand is that balance sheet accounts (assets, liabilities, and equity accounts) measure a point in time, while income statement accounts (revenue & expenses) cover a period of time (a year)

When the year is over, the balances in the income statement accounts have to be 'closed' into income summary, which will be added to equity for the next year. They will start the next period with zero balances (so they can again measure the results of the new period).

So, you simply credit all the debit balance (expense) income statement accounts, debit all the credit balance (revenue) income statement accounts, and the difference (profit or loss for the period) is debited (if loss) or credited (if net income) to income summary.

In the real world this is done automatically by your accounting package, but it is good to understand the process.

You don't need to do anything with the balance sheet accounts (like cash & prepaid insurance) they are just in the problem to confuse you.

Good luck!