The balance in the Rent Expense account on the worksheet was $725. The journal entry to close the Rent Expense account is
A) Rent Expense 725 Prepaid Rent 725
B) Rent Expense 725 Income Summary 725
C) Rent Expense 725 Capital 725
D) Income Summary 725 Rent Expense 725

Question

Quizplus · Accepted Answer

The correct journal entry to close the Rent Expense account involves debiting the Income Summary account and crediting the Rent Expense account. This moves the expense out of the Rent Expense account and into the Income Summary account, which is used to compile all income and expenses for the period.

The Balance in the Rent Expense Account on the Worksheet