Question

The income statement for the month of June, 2018 of Sarasota Enterprises contains the following information:

Revenues $6740
Expenses:
Salaries and Wages Expense $2900
Rent Expense 1530
Advertising Expense 740
Supplies Expense 270
Insurance Expense 110
Total expenses 5550
Net income $1190
The entry to close the expense accounts includes a:_______
a) debit to Salaries and Wages Expense for $2900.
b) credit to Rent Expense for $1530
c) debit to Income Summary for $1190.
d) credit to Income Summary for $5550.

Answer 1

b) credit to Rent Expense for $1530

Step-by-step explanation:

Date Accounts and Explanation Debit Credit

Income Summary $5,550

Salaries & Wages Expense $2,900

Rent Expense $1,530

Advertising Expense $740

Supplies Expense $270

Insurance Expense $110

(To Close the expense accounts)