The Journal Entry to Close the Fees Earned, $275, and Rent

question 176

Multiple Choice

The journal entry to close the Fees Earned, $275, and Rent Revenue, $200, accounts on December 31st during the closing process would be

• A) Dec. 31 Fees Earned 275 Rent Revenue 200
• Income Summary 475
• B) Dec. 31 Income Summary 475 Fees Earned 275
• Rent Revenue 200
• C) Dec. 31 Revenues 475 Income Summary 475
• D) Dec. 31 Income Summary 475 Revenues 475

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Definitions:

Competition Act

A legal framework aiming to prevent anti-competitive practices in the marketplace, promote fair competition, and protect consumer interests.

Quiet Possession

A condition that the seller, or anyone claiming through the seller, will not interfere with the buyer’s use and enjoyment of the property.

Merchantable Quality

A condition implying that the goods are of a quality suitable for sale to a customer under the sale of goods legislation.

Inherent Defect

A flaw or imperfection in a product that exists due to its nature or design, not because of external factors.