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 :

GinnyAnswer
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.