Question

1. Finley Company End-of-Period Spreadsheet For the Year Ended December 31
   	Adjusted Trial Balance		Income Statement		Balance Sheet
   Account Title	Debit	Credit	Debit	Credit	Debit	Credit
   Cash	16,000				16,000
   Accounts Receivable	6,000				6,000
   Supplies	2,000				2,000
   Equipment	19,000				19,000
   Accumulated Depr.		6,000				6,000
   Accounts Payable		10,000				10,000
   Wages Payable		2,000				2,000
   Common Stock		5,000				5,000
   Retained Earnings		10,765				10,765
   Dividends	1,000				1,000
   Fees Earned		42,594		42,594
   Wages Expense	20,402		20,402
   Rent Expense	6,087		6,087
   Depreciation Expense	5,870		5,870
   Totals	76,359	76,359	32,359	42,594	44,000	33,765
   Net Income (Loss)			10,235			10,235
   			42,594	42,594	44,000	44,000

   The journal entry to close revenues and expenses would involve:

   a.debits to the expense accounts and credits to Retained Earnings and Fees Earned

   b.debits to Fees Earned and Retained Earnings and credits to the expense accounts

   c.debits to the expense accounts and Retained Earnings and a credit to Fees Earned

   d.a debit to Fees Earned and credits to the expense accounts and Retained Earnings

Answer 1

Answer is "debits to fees earned and credits to the expense accounts and retained earnings" Debit 42,594 Credit General Journal Fees Earned Wages Expense Rent Expense Depreciation Expense Retained Earnings 20,402 6,087 5,870 10,235