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NEW QUESTION: 1
The journal entry required to close the utilities expense account is
A. Rental expense US $1,400 Utilities expense US $1,400
B. Utilities expense US $1,400 Income summary US $1,400
C. Utilities expense US $1,400 Retained earnings US $1,400
D. Income Summary US $1,400 Utilities expense US $1,400
All income statement account balances are closed either to a summary account such as income summary or revenue and expense summary) or to retained earnings. The normal balance of an expense account is a debit. Thus, an expense account is credited in a closing entry.
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