Evan Roberts owns a business,Shore Sports,that rents canoes and kayaks.Below is the adjusted trial balance at December 31. The entry required to close the expense accounts at the end of the period will

Question

Evan Roberts owns a business,Shore Sports,that rents canoes and kayaks.Below is the adjusted trial balance at December 31.​  The entry required to close the expense accounts at the end of the period will

Quizplus · Accepted Answer

To close the expense accounts at the end of the period, a debit entry is made to each expense account and a credit entry is made to the owner's capital account for the total amount of expenses incurred during the period. 
The total amount of expenses incurred during the period is calculated by adding up the balances of all the expense accounts:
$22,920 + $3,220 + $5,380 + $1,000 + $1,000 + $100 = $33,520
Therefore, the entry required to close the expense accounts at the end of the period will increase Owner's Capital by $33,520. 
Option C is the correct choice.

Evan Roberts Owns a Business,Shore Sports,that Rents Canoes and Kayaks