Which of the following entries will be necessary to close the appropriate depreciation account at the end of the year?
A)Debit Accumulated Depreciation and credit Income Summary
B)Debit Depreciation Expense and credit Income Summary
C)Debit Income Summary and credit Accumulated Depreciation
D)Debit Income Summary and credit Depreciation Expense

Question

Quizplus · Accepted Answer

At the end of the year, the Depreciation Expense account is closed to the Income Summary account. This involves debiting Income Summary and crediting Depreciation Expense. Accumulated Depreciation is a contra asset account and is not closed at year-end.

Which of the Following Entries Will Be Necessary to Close