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:

Question

Business

Haleigh Simmons

19 March, 16:50

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:

+3

Answers (1)

Know the Answer?

Marin Byrd · Answer 1

Debit to income summary account = $2,770

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)