Which of the following entries will be necessary to close the insurance expense account at the end of the year?
A)Debit Capital and credit Insurance expense
B)Debit Insurance expense and credit Income summary
C)Debit Insurance expense and credit Capital
D)Debit Income summary and credit Insurance expense

Question

Quizplus · Accepted Answer

To close the insurance expense account, you need to debit the Income Summary and credit the Insurance Expense account, transferring the expense to the Income Summary for the period.

Which of the Following Entries Will Be Necessary to Close