Which of the following entries will be necessary to close the Insurance Expense account at the end of the year?
A) debit Insurance Expense and credit Income Summary
B) debit Insurance Expense and credit Owner, Capital
C) debit Owner, Withdrawals and credit Insurance Expense
D) debit Income Summary and credit Insurance Expense

Question

Quizplus · Accepted Answer

Closing entries are made at the end of the accounting period to reset the balances of temporary accounts to zero in preparation for the next period. Insurance Expense is a temporary account, and to close it, we must debit the account and credit Income Summary. Therefore, option D is the correct answer.

Which of the Following Entries Will Be Necessary to Close