Use the work sheet for Finley Company to answer the questions that follow. The journal entry to close revenues would be
A) debit Income Summary, $141,000; credit Fees Earned, $141,000
B) debit Retained Earnings, $141,000; credit Fees Earned, $141,000
C) debit Fees Earned, $141,000; credit Income Summary, $141,000
D) credit Fees Earned, $141,000; credit Retained Earnings, $141,000

Question

Use the work sheet for Finley Company to answer the questions that follow.  The journal entry to close revenues would be
A) debit Income Summary, $141,000; credit Fees Earned, $141,000 
B) debit Retained Earnings, $141,000; credit Fees Earned, $141,000 
C) debit Fees Earned, $141,000; credit Income Summary, $141,000 
D) credit Fees Earned, $141,000; credit Retained Earnings, $141,000

Quizplus · Accepted Answer

The revenues should be debited to the Income Summary account and credited to the Fees Earned account to close the revenues. Therefore, the correct option is debit Fees Earned for $141,000, credit Income Summary for $141,000.

Use the Work Sheet for Finley Company to Answer the Questions