Question

The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would involve:

a debit to a general revenue account

debits to the two revenue accounts

credits to the two revenue accounts

a credit to a general revenue account

Answer 1

Answer:

credits to the two revenue accounts

Explanation:

The journal entry above is focusing on "two revenue accounts" and these are "Fees Earned" and "Rent Revenue."

Remember that "Fees Earned" is part of the revenue section in the Income Statement. It is the amount of money earned for services provided such as auditing fees or consulting fees.

An increase in revenue is being credited when it comes to journal entries. So, this means that "credits to the two revenue accounts" have to be made.

So, this explains the answer.