Questions: The following information is from Evan Company's adjusted trial balance: Accounts Payable: 10,000 Accounts Receivable: 3,000 Accumulated Depreciation: 1,400 Depreciation Expense: 1,500 Dividends: 2,400 Insurance Expense: 2,300 Interest Revenue: 1,240 Prepaid Insurance: 2,320 Retained Earnings: 10,500 Salary Expense: 24,100 Service Revenue: 37,800 In the closing process, which accounts are credited? Interest Revenue, Service Revenue Depreciation Expense, Dividends, Insurance Expense, Salary Expense Depreciation Expense, Insurance Expense, Salary Expense, Prepaid Insurance Accounts Receivable, Prepaid Insurance, Salary Expense

The answer is A: Interest Revenue, Service Revenue.

Explanation:

1. Interest Revenue, Service Revenue: These are revenue accounts. During the closing process, revenue accounts are closed by crediting them to transfer their balances to the Income Summary account. Therefore, this option is correct.

2. Depreciation Expense, Dividends, Insurance Expense, Salary Expense: These are expense and dividend accounts. In the closing process, expense accounts and dividends are debited to close them, not credited. Therefore, this option is incorrect.

3. Depreciation Expense, Insurance Expense, Salary Expense, Prepaid Insurance: Again, these are expense accounts and a prepaid asset account. Expense accounts are debited during the closing process, and prepaid insurance is an asset account that is not closed. Therefore, this option is incorrect.

4. Accounts Receivable, Prepaid Insurance, Salary Expense: Accounts Receivable and Prepaid Insurance are asset accounts, and Salary Expense is an expense account. Asset accounts are not closed, and expense accounts are debited during the closing process. Therefore, this option is incorrect.