Earning revenue journal entry is recorded as: A: Increases assets, decreases stockholders’ liabilities B: Decreases assets, increases liabilities C: Increases assets, increases stockholders’ equity D: Increases one asset, decrease another asset Solution Answer: C: Increases assets, increases stockholders’ equity is correct.Journal Entry for earning revenueNatureEffectDateAccountsDebit $Credit $Debtors/CashAmountAssetsIncrease(as it has been debited)Sales/RevenueAmountStockholders’ equityIncrease(as it has been credited).