MosoFin skill · closing-entries-and-trial-balance · learning guide

From one account type to a year that closes once

This page shows how the skill closes a year, one level at a time. It starts with the type of one account. It ends with a proof that the books balance after the close, and a lock that a person does. The page quotes every rule from the skill and works every number in front of you.

The rules are the skill's ownThe page quotes each rule word for word, with the file and section it comes from.

Outside sources back the factsThey are three sections of an OpenStax textbook, two IRS pages and one FASB standard. Each one has a number and a link.

The page shows the mathOpen "Check it yourself" on any level. Follow every line on a calculator.

Your year, your checkAt the end, enter your own totals and members. The page shows the entries that the skill proposes and the equity after the close.

Rule: quoted from the skill Fact: from a cited authority, numbered like ¹ Example: made-up figures, calculated in full

How it thinks

Eight rules the whole close runs on

Every level below applies one or more of these rules. Northbrook Trading on this page is the skill's own example: a two-member LLC that closes FY2025. It keeps its books in US dollars, on the accrual basis, under US GAAP, in one QuickBooks Online company file. The skill's read-back names FY2026, but that year has not ended yet. So this example moves the year back by one and keeps every other word. Other pages on this site use the name Northbrook with different facts. Do not compare the figures across pages.

Learning path

Six levels, from simple to complex

Check it yourself

Close your own year on paper

Enter the totals from your final trial balance, or load an example. The page applies Step 0b, Step 4 and Step 5 from references/method.md. The page sends nothing anywhere.

The business Entity type Closed-state finding (Step 0b)

For a corporation or a sole proprietor, the page uses only the first row below.

The year's totals Revenue (A, before contra) Contra revenue, debit balance Other income and gains (B) Cost of sales (C) Operating expenses (D) Other expenses and losses (E) Income tax expense (F)

Member or owner	Share %	Opening capital or RE	Distributions, draws or dividends

The page checks arithmetic and the skill's entry shapes only. It cannot see your books, so it cannot run the closed-state test. You choose the finding. For an LLC, the shares must add up to 100. The page never assumes equal shares. Amounts round to the cent, and the last member takes any cent left over.

Using it

What it asks, needs and gives back

Asks firstUse MosoFin, or upload the data yourself? Which company? What is the fiscal year end? What is the entity type, and for an LLC, how do members share profit? Which framework? Is the trial balance final? Does your system close the year automatically? Is the audit complete? Two-step or four-step? Cash or accrual?

NeedsThe final trial balance at the year end and the chart of accounts with types. For the closed-state test, it needs the trial balance on the first day of the new year and the equity ledger. Last year's statements or return let it agree the opening equity.

Gives backThe closed-state finding, the proposed entries with every account named, both trial balances and the tie-outs. It makes an eight-sheet workpaper only on a yes. The last sheet shows the coverage and names the person who locks the year.

NeverThe skill never reads your data before you answer and say yes to the read-back. It never posts or locks anything. It never proposes an entry before the closed-state test. It never chooses the year end, the entity type or the framework for you.

Sources

Where every fact on this page comes from

The rules are the skill's own. The facts below come from six outside sources: three sections of an OpenStax textbook, two IRS pages and one FASB standard. MosoFin found each one on 28 October 2026 in search results and did not open the pages. Follow the link for today's wording.

Not backed by an outside authority. The closed-state test in Step 0b and its three states are the skill's own. So are the decision on account type, the eight output sheets and the [auto], [gated] and [manual] verdicts. The rule that the skill never locks a year is also its own. MosoFin made up the members, their shares and every figure in the examples.