Question

The completed work sheet for Valerie Insurance Agency as of December 31 is presented below, along with the general ledger as of December 31 before adjustments.

Valerie Insurance Agency
Work Sheet
For Year Ended December 31, 20—
		TRIAL BALANCE		ADJUSTMENTS		ADJUSTED TRIAL BALANCE		INCOME STATEMENT		BALANCE SHEET
	ACCOUNT NAME	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT	DEBIT	CREDIT
1	Cash	7,532.00				7,532.00				7,532.00		1
2	Office Supplies	315.00			(c) 75.00	240.00				240.00		2
3	Office Equipment	2,398.00				2,398.00				2,398.00		3
4	Accum. Depr., Office Equipment		420.00		(a) 420.00		840.00				840.00	4
5	M. Valerie, Capital		18,614.00				18,614.00				18,614.00	5
6	M. Valerie, Drawing	18,000.00				18,000.00				18,000.00		6
7	Premiums Earned		33,400.00				33,400.00		33,400.00			7
8	Wages Expense	20,500.00		(b) 428.00		20,928.00		20,928.00				8
9	Rent Expense	2,200.00				2,200.00		2,200.00				9
10	Telephone Expense	736.00				736.00		736.00				10
11	Advertising Expense	645.00				645.00		645.00				11
12	Miscellaneous Expense	108.00				108.00		108.00				12
13		52,434.00	52,434.00									13
14	Office Supplies Expense			(c) 75.00		75.00		75.00				14
15	Depr. Exp., Office Equipment			(a) 420.00		420.00		420.00				15
16	Wages Payable				(b) 428.00		428.00				428.00	16
17				923.00	923.00	53,282.00	53,282.00	25,112.00	33,400.00	28,170.00	19,882.00	17
18	Net Income							8,288.00			8,288.00	18
19								33,400.00	33,400.00	28,170.00	28,170.00	19

3. Journalize and post the closing entries in the correct order. If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL						PAGE  17
DATE	DESCRIPTION	DOC. NO.		POST. REF.	DEBIT	CREDIT
20--	Closing Entries
Dec. 31	Premiums Earned
	Income Summary
Dec. 31	Income Summary
	Wages Expense
	Rent Expense
	Office Supplies Expense
	Depreciation Expense, Office Equipment
	Telephone Expense
	Advertising Expense
	Miscellaneous Expense
Dec. 31	Income Summary
	M. Valerie, Capital
Dec. 31	M. Valerie, Capital
	M. Valerie, Drawing

Answer 1

3. Journalize and post the closing entries in the correct order. If an amount box does not require an entry, leave it blank.

GENERAL JOURNAL						PAGE  17
DATE	DESCRIPTION	DOC. NO.		POST. REF.	DEBIT	CREDIT
20--	Closing Entries
Dec. 31	Premiums Earned				33400
	Income Summary					33400
Dec. 31	Income Summary				25112
	Wages Expense					20928
	Rent Expense					2200
	Office Supplies Expense					75
	Depreciation Expense, Office Equipment					420
	Telephone Expense					736
	Advertising Expense					645
	Miscellaneous Expense					108
Dec. 31	Income Summary				8288
	M. Valerie, Capital					8288
Dec. 31	M. Valerie, Capital				18000
	M. Valerie, Drawing					18000