The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts on December 31st during the closing process would be:
A) Dec. 31 Fees Earned 750
Rent Revenue 175
Income Summary 925
B) Dec. 31 Income Summary 925
Fees Earned 750
Rent Revenue 175
C) Dec. 31 Revenues 925
Income Summary 925
D) Dec. 31 Income Summary 925
Revenues 925

Question

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts on December 31st during the closing process would be:
A) Dec. 31 Fees Earned 750 
Rent Revenue 175
Income Summary 925
B) Dec. 31 Income Summary 925 
Fees Earned 750
Rent Revenue 175
C) Dec. 31 Revenues 925
 Income Summary 925
D) Dec. 31 Income Summary 925 
Revenues 925

Quizplus · Accepted Answer

The correct answer is A because it shows the Fees Earned and Rent Revenue accounts being closed and the Income Summary account being credited for the total amount of revenue earned during the period.

The Journal Entry to Close the Fees Earned, $750, and Rent