Answered

Based on the adjusted trial balance below, how much should be debited to the Income Summary account when closing expense accounts?

Adjusted Trial Balance
\begin{tabular}{|c|c|c|}
\hline Accounts & Debit & Credit \\
\hline Cash & [tex]$\$[/tex] 8,700.00[tex]$ & \\
\hline Accounts Receivable & $[/tex]\[tex]$ 4,400.00$[/tex] & \\
\hline Supplies & [tex]$\$[/tex] 200.00[tex]$ & \\
\hline Prepaid Insurance & $[/tex]\[tex]$ 2,400.00$[/tex] & \\
\hline Equipment & [tex]$\$[/tex] 15,000.00[tex]$ & \\
\hline Accumulated Depreciation & & $[/tex]\[tex]$ 250.00$[/tex] \\
\hline Accounts Payable & & [tex]$\$[/tex] 14,000.00[tex]$ \\
\hline Unearned Revenue & & $[/tex]\[tex]$ 400.00$[/tex] \\
\hline Salaries and Wages Payable & & [tex]$\$[/tex] 2,100.00[tex]$ \\
\hline Common Stock & & $[/tex]\[tex]$ 10,000.00$[/tex] \\
\hline Service Revenue & & [tex]$\$[/tex] 7,700.00[tex]$ \\
\hline Salaries and Wages Expense & $[/tex]\[tex]$ 2,100.00$[/tex] & \\
\hline Insurance Expense & [tex]$\$[/tex] 600.00[tex]$ & \\
\hline Supplies Expense & $[/tex]\[tex]$ 800.00$[/tex] & \\
\hline Depreciation Expense & [tex]$\$[/tex] 250.00[tex]$ & \\
\hline Total & $[/tex]\[tex]$ 34,450.00$[/tex] & [tex]$\$[/tex] 34,450.00$ \\
\hline
\end{tabular}



Answer :

To determine how much should be debited to the Income Summary account when closing expense accounts, we need to look at the amounts of the various expense accounts. These include:

1. Salaries and Wages Expense
2. Insurance Expense
3. Supplies Expense
4. Depreciation Expense

Here's the step-by-step process:

1. Identify the expense accounts and their balances:
- Salaries and Wages Expense: \[tex]$2,100.00 - Insurance Expense: \$[/tex]600.00
- Supplies Expense: \[tex]$800.00 - Depreciation Expense: \$[/tex]250.00

2. Calculate the total amount to be debited to Income Summary:
- Add up all the expense amounts to get the total amount:
[tex]\[ \text{Total Debit to Income Summary} = \text{Salaries and Wages Expense} + \text{Insurance Expense} + \text{Supplies Expense} + \text{Depreciation Expense} \][/tex]
Substituting the values:
[tex]\[ \text{Total Debit to Income Summary} = 2100.00 + 600.00 + 800.00 + 250.00 \][/tex]

3. Perform the addition:
[tex]\[ 2100.00 + 600.00 = 2700.00 \][/tex]
[tex]\[ 2700.00 + 800.00 = 3500.00 \][/tex]
[tex]\[ 3500.00 + 250.00 = 3750.00 \][/tex]

Therefore, the total amount that should be debited to the Income Summary account when closing expense accounts is \$3,750.00.