Which of the following entries properly closes a temporary account?
A. $200 debit, Dividends: $200 credit, Retained Earnings
B. $400 debit, Income Summary; $400 credit, Rent Expense
C. $1600 debit, Accumulated Depreciation; $1600 debit, Income Summary
D. $20,000 debit, Income Summary; $20,000 credit, Service Revenue
Which is correct and why?

Answer is B

Few rules for when you close temp accounts:

Always close accounts with "income summary" account.

If you have Revenue accounts such as sales, interest, or rent revenue, then it's like this
Debt Rev account
Credit Income summary

For Expenses
Debt Income summary
Credit expense account

Debt Income summary
Credit Retained Earning


Make sense?