Identify Which of the Following Accounts Should Be Closed with a Debit

question 68

Essay

Identify which of the following accounts should be closed with a debit or a credit to Income Summary at the end of the fiscal year. If it is not closed to Income Summary, mark as n/a.

1. Utilities Payable
2. Utilities Expense
3. Supplies
4. Supplies Expense
5. Fees Earned
6. Unearned Fees
7. Accounts Receivable
8. Dividends
9. Retained Earnings
10. Accumulated Depreciation—Equipment
11. Depreciation Expense—Equipment
12. Equipment
13. Prepaid Insurance
14. Insurance Expense

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Definitions:

Trade Embargoes

Government-imposed restrictions on the exchange of goods and services with a particular country or group of countries.

USMCA

The United States-Mexico-Canada Agreement, a free trade agreement between these three countries that replaced NAFTA.

NAFTA

The North American Free Trade Agreement is a treaty between Canada, Mexico, and the United States that eliminated most tariffs on trade between these nations, aiming to increase economic integration.

Trade Agreement

A treaty between two or more countries to outline how they will work together to ensure mutual benefit in trade, often involving tariff reductions, import quotas, and other trade incentives.