Question

The following information is from the Income Statement of the Vaughn Laundry Service:

Revenues
Service Revenues $5070
Expenses
Salaries and wages expense $ 1910
Advertising expense 390
Rent expense 230
Supplies expense 160
Insurance expense 80
Total expenses 2770
Net income $2300

The entry to close the expense accounts includes a:

Answer 1

Debit to income summary account = $2,770

Step-by-step explanation:

The journal entry to close the expense account is shown below:

Income summary A/c Dr $2,770

To Salaries and wages expense $1,910

To Advertising expense $390

To Rent expense $ 230

To Supplies expense $160

To insurance expense $80

(Being expense accounts are closed)