[The Following Information Applies to the Questions Displayed Below

question 59

Multiple Choice

[The following information applies to the questions displayed below.]
Shown below is a trial balance for Novelty Toys,Inc. ,on December 31,after adjusting entries:

-The entry to close the Fees Earned account will:

• A)Produce a zero balance in that account when posted.
• B)Include a debit to Income Summary.
• C)Include a credit to Fees Earned.
• D)Include a debit to Capital Stock.

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Definitions:

Contract Modifications

Changes made to the terms and conditions of an existing contract, agreed upon by all parties involved.

Bad Faith

Intentional dishonest act or failure to act, which misleads or deceives others, often in legal or contractual contexts.

Course Of Performance

The conduct that occurs under the terms of a particular agreement. Such conduct indicates what the parties to an agreement intended it to mean.

Contracting Parties

Contracting parties are the individuals or entities who enter into a contract, mutually agreeing to its terms and obligations.