Closing the expense accounts to Income Summary

Transaction

At year end, after the adjusting entries, a sole proprietorship’s only expense accounts are Salaries Expense with a debit balance of $42,600.00, Rent Expense with a debit balance of $14,400.00 and Utilities Expense with a debit balance of $3,180.00. Close the expense accounts to Income Summary.

Assumptions: The business closes its revenue and expense accounts through Income Summary.