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The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be:

a. Dec. 31

Revenues 925

Income Summary 925


b. Dec. 31

Income Summary 925

Fees Earned 750

Rent Revenue 175


c. Dec. 31

Fees Earned 750

Rent Revenue 175

Income Summary 925


d. Dec. 31

Income Summary 925

Revenues 925

1 Answer

7 votes

Answer:

b. Dec. 31

Income Summary 925

Fees Earned 750

Rent Revenue 175

Step-by-step explanation:

At the end of each accounting period, the elements of the income statements which are the revenues earned and the expenses incurred are usually closed to the income summary account.

The revenue earned which is normally a credit balance is closed by debiting the account and crediting the income summary. The expenses are closed by crediting the account and debiting the income summary.

Hence if Fees Earned, $750, and Rent Revenue, $175,

Total revenue = $750 + $175

= $925

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