following selected accounts and balances appear on the adjus

following selected accounts and balances appear on the adjusted trial balance for Vibrant Light, Inc, on October 31, 201 EE (Click the icon to view the accounts.) Read thequirements. Journal Entry Date Accounts Debit Credit Oct 31 Service revenue 1,200 Retained eamings 1,200 Close out the expense accounts Journal Entry Date Accounts Debit Oct 31 950 Salaries expense Rent expense 200 Choose from any list or enter any number in the input fields and then click Check Answer Clear Al remaining esc 2 tab caps lock

Solution

Normally To close the expense accounts, we will credit income summary account and debit expenses accounts. Here in question insteed of income summary they suggested directly posting to retained accounting. so retained account will credit and expenses accounts will debit

Journal entry will be:

Retained earnings	$ 1,150
Salaries expense		$ 950
Rent expense		$ 200