Question

The journal entry to close the Fees Earned, $131, and Rent Revenue, $24, accounts during the year-end closing process would involve:
A. a debit to a general revenue account
B. debits to the two revenue accounts
C. credits to the two revenue accounts
D. a credit to a general revenue account

Answer 1

Answer:

Option B is correct, revenue has the debit side. But, if the rent is an expense and not a revenue, the rent expence will be on the credit side and the fees earned will be on the debit side,so, for this case, option A will be the correct answer

Explanation:

To close the Journal entry here, with fees earned=$131 and rent revenue=$124, accounts during the year end will be closed with the fees earned account(revenue account) and the expenses are closed by transferring the amount of fees accrued or earned account and expense account to the retained earnings in order to bring the revenue accounts and the expenses accounts balance to zero.