Question

The journal entry to close the Fees Earned, $100, and Rent Revenue, $25, accounts on December 31st during the closing process would be: a. Dec 31 Fees Earned 100 Rent Revenue 25 Income Summary 125 b. Dec 31 Income Summary 125 Fees Earned 100 Rent Revenue 25 c. Dec 31 Revenues 125 Income Summary 125 d. Dec 31 Income Summary 125 Revenues 125

Answer 1

a. Dec 31 Fees Earned 100 Rent Revenue 25 Income Summary 125

Step-by-step explanation:

The closing entry to close the fees earned and the rent revenue is shown below

On December 31

Fees Earned $100

Rent Revenue $25

To Income Summary $125

(Being revenue account closed)

For closing this entry we debited the revenue account and credited the income summary account so that the proper posting could be done