JournaldrillClosing expenses
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Hilltop Pet Sitting, Inc. closes its books through Income Summary. At year end its expense accounts show these debit balances: Wages Expense $31,200, Rent Expense $14,400, Supplies Expense $2,150 and Depreciation Expense $3,600. Record the entry that closes the expense accounts.
What this exercise teaches
Expenses are temporary accounts with debit balances, so each is credited for its full balance to reset it. The total, $31,200 + $14,400 + $2,150 + $3,600 = $51,350, is debited to Income Summary. Accumulated Depreciation is a permanent contra-asset account and is never closed.
A hint if you get stuck
Each expense normally has a debit balance; bring it to zero from the other side and collect the total in the clearing account.
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