Asked by Daisy Farhm on Apr 26, 2024
Verified
The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would involve:
A) debits to the two revenue accounts
B) credits to the two revenue accounts
C) a debit to a general revenue account
D) a credit to a general revenue account
Year-End Closing Process
The series of steps taken to close out business accounts at the end of the fiscal year, preparing the books for the next fiscal period.
Fees Earned
Income generated from providing services, regarded as a revenue for the entity performing the service.
Rent Revenue
Earnings from property that is leased to others for use.
- Engage in the process of tweaking and sealing entries for accounts related to revenues, expenditures, and dividends.
Verified Answer
CU
CHRISTOPHER UNIGARROMay 01, 2024
Final Answer :
A
Explanation :
At the end of an accounting period, revenue accounts, which have credit balances, are closed by debiting the revenue accounts and crediting an income summary or retained earnings account to zero out the revenues for the new accounting period.
Learning Objectives
- Engage in the process of tweaking and sealing entries for accounts related to revenues, expenditures, and dividends.
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