Question

Use the following account balances from the adjusted trial balance of Gees Catering: Account Debit Balance Credit Balance Cash 10,000 Accounts Payable 2,000 R. Gees, Drawing 1,000 R. Gees, Capital 18,000 Fees Revenue 10,000 Salary Expense 7,000 Rent Expense 6,000 Supplies Expense 6,000 Select the correct closing entry that Gees Catering would make to close their revenue account(s) at the end of the accounting period.

Answer 1

Answer:

Debit Fees Revenue and credit Income Summary for $10,000

Explanation:

The journal entry for recording the closing the revenue account is as follows

Fees revenue Dr $10,000

          To Income summary $10,000

(Being the closing of revenue account is recorded)

For recording this we debited the fees revenue and credited the income summary so that the correct recording and posting could be done