Use the following worksheet to answer the following questions. Finley Company Wo
ID: 2778104 • Letter: U
Question
Use the following worksheet to answer the following questions.
Finley Company
Worksheet
For the Year Ended December 31, 2014
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
25,000
25,000
Wages Payable
6,000
6,000
C. Finley, Capital
33,000
33,000
C. Finley, Drawing
3,000
3,000
Fees Earned
155,000
155,000
Wages Expense
63,000
63,000
Rent Expense
27,000
27,000
Depreciation Expense
15,000
15,000
Totals
237,000
237,000
105,000
155,000
132,000
82,000
Net Income (Loss)
50,000
50,000
155,000
155,000
132,000
132,000
The journal entry to close revenues would be:
a.
debit Income Summary $155,000, credit Fees Earned $155,000
b.
debit C. Finley, Capital $155,000, credit Fees Earned $155,000
c.
debit Fees Earned $155,000; credit Income Summary $155,000
d.
credit Fees Earned $155,000; credit C. Finley, Capital $155,000
Finley Company
Worksheet
For the Year Ended December 31, 2014
Adjusted Trial Balance
Income Statement
Balance Sheet
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash
48,000
48,000
Accounts Receivable
18,000
18,000
Supplies
6,000
6,000
Equipment
57,000
57,000
Accumulated Depr-Equip
18,000
18,000
Accounts Payable
25,000
25,000
Wages Payable
6,000
6,000
C. Finley, Capital
33,000
33,000
C. Finley, Drawing
3,000
3,000
Fees Earned
155,000
155,000
Wages Expense
63,000
63,000
Rent Expense
27,000
27,000
Depreciation Expense
15,000
15,000
Totals
237,000
237,000
105,000
155,000
132,000
82,000
Net Income (Loss)
50,000
50,000
155,000
155,000
132,000
132,000
Explanation / Answer
In order to close the revenues account, Revenue account shall be debited and corresponding credit entry shall be given to income summary account.
Therefore, correct option is 'c' in which fees earned is debited with 155,000 and income summary is credited with $155,000
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