the closing entry for the salaries expense account includes a debit to:\na. retained earnings and a credit…
the closing entry for the salaries expense account includes a debit to:\na. retained earnings and a credit to salaries expense.\nb. salaries expense and a credit to net income.\nc. net income and a credit to salaries expense.\nd. salaries expense and a credit to retained earnings.
Answer
Brief Explanations:
When closing expense accounts (like Salaries Expense), we transfer their balances to Retained Earnings. Expense accounts have debit balances. To close them, we credit the expense account (Salaries Expense) and debit Retained Earnings. This is because closing entries aim to zero - out temporary accounts (expenses are temporary) and update the Retained Earnings (a permanent account) for the impact of expenses on the company's net income (which ultimately affects Retained Earnings).
Answer:
A. Retained Earnings and a credit to Salaries Expense.