Bookkeeping Exercises
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Module 19About 8 minPro practice

The month-end close checklist

Objective: Sequence month-end close tasks.

Recommended first: Bank reconciliation basics, Why adjusting entries exist

Checklist

  • 1. Record all source documents for the month (cutoff).
  • 2. Reconcile bank and card accounts.
  • 3. Reconcile AR and AP subledgers.
  • 4. Record adjustments: prepaids, accruals, depreciation, inventory count.
  • 5. Review the adjusted trial balance for unusual balances.
  • 6. Prepare statements.
  • 7. Close temporary accounts (at year-end, or monthly if your system requires it).
  • 8. Lock the period.

A written checklist makes the close repeatable and reviewable. Assign each task an owner and a due date, and keep evidence — reconciliations, count sheets, and schedules — with the month's records. Locking the period afterward prevents accidental changes; later corrections go into an open period.

Check your work

  • Is every reconciliation complete and supported?
  • Are adjustments documented?
  • Has the period been locked after review?
Worked example: Unusual balance

Accounts Payable shows a debit balance — investigate before closing (often a duplicate payment).

Journal entry for the worked example
AccountDebitCredit
Accounts Payable (unusual debit)$250.00

Common mistakes

  • ✗ Closing before reconciling.

    ✓ Reconcile first; corrections after close are harder.

Guided practice

Use hints freely here.

Item 1 of 1

Freeeasy

Which accounts are closed?

Select every account that is closed (brought to zero) at the end of the period.

Select all that apply

Independent practice

Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.

Item 1 of 4

Freeeasy

Reconcile Corner Bean Café's bank account

Reconcile the bank statement to the Cash account at month-end. Classify each unmatched item, compute the adjusted bank and book balances, and record only the adjusting entries the books need.

Bank statement balance (Mar 31, 2026)

$5,910.00

Cash account (books)

$6,100.00

1. Classify each unmatched item

  • In the books Deposit of $660.00 recorded Mar 31, not on statement ($660.00)

  • In the books Check #1182 for $500.00 not yet cleared (($500.00))

  • On bank statement Monthly service fee $30.00 (($30.00))

2. Adjusted balances
3. Adjusting entries the books need

Record only book-side items. Leave this empty if no entries are needed.

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Key terms

Month-end close
The process of finalizing the books for a month.

References and provenance

Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.