JournaldrillClosing revenues
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Hilltop Pet Sitting, Inc. closes its books through Income Summary. At year end, before closing, Service Revenue has a credit balance of $58,400 and Interest Revenue has a credit balance of $260. Record the entry that closes the revenue accounts.
What this exercise teaches
Revenue accounts are temporary and normally carry credit balances, so each is debited for its full balance to reset it to zero. The combined $58,660 is credited to Income Summary, which will later be closed to Retained Earnings after expenses are closed into it.
A hint if you get stuck
Bring each revenue balance to zero with the opposite side and send the total to the clearing account.
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