Answer:
Journal 1
Debit : Fees Earned $702,400
Credit : Income Statement $702,400
<em>Closing off Revenue against Income Statements</em>
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Journal 2
Debit : Income Statement $574,600
Credit : Wages Expense $480,000
Credit : Rent Expense $69,000
Credit : Supplies Expense $11,000
Credit : Miscellaneous Expense $14,600
<em>Closing off Expenses against Income Statements</em>
Explanation:
The Income Statement accounts for Incomes and expenses. Therefore, close off the Income Accounts against the Income Statement as well as Expenses Accounts.