Use the following worksheet to answer the following questions. The journal entry to close revenues would be:
A) debit Income Summary $155,000, credit Fees Earned $155,000
B) debit C. Finley, Capital $155,000, credit Fees Earned $155,000
C) debit Fees Earned $155,000; credit Income Summary $155,000
D) credit Fees Earned $155,000; credit C. Finley, Capital $155,000

Question

Use the following worksheet to answer the following questions.  The journal entry to close revenues would be:
A) debit Income Summary $155,000, credit Fees Earned $155,000 
B) debit C. Finley, Capital $155,000, credit Fees Earned $155,000 
C) debit Fees Earned $155,000; credit Income Summary $155,000 
D) credit Fees Earned $155,000; credit C. Finley, Capital $155,000

Quizplus · Accepted Answer

The journal entry to close revenues involves transferring the balance of Fees Earned account to Income Summary account. Therefore, the entry should be debit Fees Earned $155,000 and credit Income Summary $155,000. Option A and B are incorrect as they credit Fees Earned account instead of debiting it. Option D is incorrect as it credits C. Finley, Capital account, which is not involved in the closing process.

Use the Following Worksheet to Answer the Following Questions