Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.

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Select the correct closing entry that RB Auto would make to close their expense account(s)at the end of the accounting period.
A)debit R. Holloway, Capital $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000
B)debit Income Summary $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000
C)debit Salary Expense $4,000; debit Rent Expense $3,000; debit Purchases $2,000 and credit Income Summary $9,000
D)debit Income Summary $9,000 and credit R. Holloway, Capital for $9,000

Question

Use the following account balances from the adjusted trial balance columns of RB Auto's
Worksheet to answer below question.
 
-
Select the correct closing entry that RB Auto would make to close their expense account(s)at the end of the accounting period.
A)debit R. Holloway, Capital $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000 
B)debit Income Summary $9,000 and credit Salary Expense $4,000; credit Rent Expense $3,000; credit Purchases $2,000 
C)debit Salary Expense $4,000; debit Rent Expense $3,000; debit Purchases $2,000 and credit Income Summary $9,000 
D)debit Income Summary $9,000 and credit R. Holloway, Capital for $9,000

Quizplus · Accepted Answer

The closing entry for expense accounts involves debiting each individual expense account and crediting Income Summary for the total amount of expenses. Option B correctly reflects this entry by debiting Salary Expense, Rent Expense, and Purchases and crediting Income Summary for a total of $9,000. The other options do not accurately reflect the necessary closing entry for expenses.

Use the Following Account Balances from the Adjusted Trial Balance