Bob Evans owns a business,Beachside Realty,that rents condominiums and furnishings.Below is the adjusted trial balance at December 31,2014.

The entry required to close the expense accounts at the end of the period includes a:

Question

Bob Evans owns a business,Beachside Realty,that rents condominiums and furnishings.Below is the adjusted trial balance at December 31,2014.

The entry required to close the expense accounts at the end of the period includes a:

Quizplus · Accepted Answer

To close the expense accounts at the end of the period, we need to transfer their balances to the Income Summary account. Since the total amount of expenses is $33,520, a debit entry should be made to Income Summary for the same amount.

Bob Evans Owns a Business,Beachside Realty,that Rents Condominiums and Furnishings