Shown below is the adjusted Trial Balance for Simon Incorporated, on December 31, after the first year of operations, after adjusting entries:

Simon, Incorporated
Adjusted Trial Balance
December 31
	Debit	Credit
Cash	$ 1,600
Accounts Receivable	4,000
Office Equipment	16,800
Accumulated Depreciation		$ 1,600
Capital Stock		2,400
Retained Earnings		2,720
Dividends	960
Service Fees Earned		21,920
Wages Expense	3,200
Supplies Expense	1,120
Depreciation Expense	960
Totals	$ 28,640	$ 28,640

The entry to close Depreciation Expense account will:

Multiple Choice

• Transfer the balance of Depreciation Expense directly to Retained Earnings.

• Include a debit to Income Summary.

• Include a debit to Depreciation Expense.

• Include a credit to Capital Stock.