Use this adjusted trial balance to answer the following question. The entry to close the expense accounts includes a

Question

Use this adjusted trial balance to answer the following question.  The entry to close the expense accounts includes a

Quizplus · Accepted Answer

To close the expense accounts, a debit is made to Income Summary for the total amount of the expenses ($20,000 in this case). This is then offset by a credit to Retained Earnings for the same amount, transferring the expenses to the Retained Earnings account. Therefore, the correct answer is B.

Use This Adjusted Trial Balance to Answer the Following Question