Use the following account balances from the adjusted trial balance of ABC Consulting:

Select the correct closing entry that ABC Consulting would make to close their revenue account(s)at the end of the accounting period.
A)debit Income Summary and credit Fees Revenue for $18,000.
B)debit Fees Revenue and credit Cash for $18,000.
C)debit Fees Revenue and credit B. Conway, Capital for $18,000.
D)debit Fees Revenue and credit Income Summary for $18,000.

Question

Use the following account balances from the adjusted trial balance of ABC Consulting:

Select the correct closing entry that ABC Consulting would make to close their revenue account(s)at the end of the accounting period.
A)debit Income Summary and credit Fees Revenue for $18,000. 
B)debit Fees Revenue and credit Cash for $18,000. 
C)debit Fees Revenue and credit B. Conway, Capital for $18,000. 
D)debit Fees Revenue and credit Income Summary for $18,000.

Quizplus · Accepted Answer

The correct closing entry to close revenue accounts is to debit the revenue account and credit the Income Summary account. Therefore, the correct entry in this case would be to debit Fees Revenue for $18,000 and credit Income Summary for $18,000. Option A is incorrect because it debits Income Summary and credits Fees Revenue. Option B is incorrect because it credits Cash instead of debiting Income Summary. Option C is incorrect because it credits B. Conway, Capital instead of debiting Income Summary.

Use the Following Account Balances from the Adjusted Trial Balance