Use this end-of-period spreadsheet to answer the questions that follow.
-The journal entry to close revenues and expenses would involve:
A)debits to the expense accounts and Retained Earnings and a credit to Fees Earned
B)debits to the expense accounts and credits to Retained Earnings and Fees Earned
C)a debit to Fees Earned and credits to the expense accounts and Retained Earnings
D)debits to Fees Earned and Retained Earnings and credits to the expense accounts

Question

Use this end-of-period spreadsheet to answer the questions that follow.​ 
-The journal entry to close revenues and expenses would involve:
A)debits to the expense accounts and Retained Earnings and a credit to Fees Earned 
B)debits to the expense accounts and credits to Retained Earnings and Fees Earned 
C)a debit to Fees Earned and credits to the expense accounts and Retained Earnings 
D)debits to Fees Earned and Retained Earnings and credits to the expense accounts

Quizplus · Accepted Answer

To close revenues and expenses, debit Fees Earned to zero it out and credit expense accounts to zero them out, with the net effect recorded in Retained Earnings.

Use This End-Of-Period Spreadsheet to Answer the Questions That Follow