which of the following entries will properly close the Revenue account?
You probably need to type the entries into your post.
This is what my book says
The first step in closing is to transfer the balance of the revenue account to Income summary, the balance is found in the Income Statement section of the work sheet
Then to record into the general journal
1. Enter "closing entries" in the center of the description column
2. Enter the date (last day of fiscal period)
3. Enter the name(s) of the accounts to be debited and amounts to be debited
4. Enter the name(s) of the accounts to be credited and the amounts to be credited
To properly close the Revenue account, you need to transfer its balance to another account. This is typically done at the end of the accounting period to update the financial records. The account to which the balance of the Revenue account is transferred is called the Retained Earnings account or an Income Summary account.
Here are a few possible entries that will properly close the Revenue account:
1. Debit Revenue Account, Credit Retained Earnings Account:
- This entry transfers the revenue to the Retained Earnings account, which represents the cumulative net income of the company.
2. Debit Revenue Account, Credit Income Summary Account:
- In this entry, the revenue is transferred to the Income Summary account, which acts as a temporary holding account for all revenues and expenses before being closed out to the Retained Earnings account.
3. Debit Revenue Account, Credit Equity Account:
- This entry transfers the revenue directly to an equity account, such as a capital account or owner's equity account, depending on the organizational structure of the company.
It is important to note that the specific account names may vary depending on the accounting framework used and the structure of the company's chart of accounts. Therefore, it is always recommended to consult with an accountant or refer to the company's accounting policies for the exact account names and entries for closing the Revenue account.