Question

The journal entry to close the Fees Earned, $132, and Rent Revenue, $27, accounts during the year-end closing process would be:

Dec. 31Revenues159

Income Summary159

Dec. 31Income Summary159

Fees Earned132

Rent Revenue27

Dec. 31Fees Earned132

Rent Revenue27

Income Summary159

Dec. 31Income Summary159

Revenues159

Answer 1

The journal entry to close the Fees Earned, $132, and Rent Revenue, $27, accounts during the year-end closing process would be:

Dec. 31 Fees Earned 132

Rent Revenue 27

Income Summary 159

Revenue accounts are closed by debiting the account balances. Nominal accounts are closed at the year end and all revenue accounts are closed by debiting and expenses are closed by crediting.