Question

PS: THE SAME EXERCISE WAS ANSWERED BEFORE BUT SOME ANSWERS ARE INCORRECT.

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
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

Required:

1. Write the balances from the unadjusted trial balance in the general ledger. Post the transactions in the order of journalizing them in the general journal. If no amount is required, leave the entry box blank.

ACCOUNT		M. Valerie, Capital					ACCOUNT NO.	311
	DATE		ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
							DEBIT	CREDIT
	20--
	Dec.	31	Balance	✔
		31	Closing	17
		31	Closing	17

ACCOUNT		Income Summary					ACCOUNT NO.	313
	DATE		ITEM	POST. REF.	DEBIT	CREDIT	BALANCE
							DEBIT	CREDIT
	20--
	Dec.	31	Closing	17
		31	Closing	17
		31	Closing	17

Answer 1

Account M. Valerie, Capital
Date	Item	Post. Ref.	Debit	Credit	Debit balance	Credit balance
Dec. 31	Balance					18,614
Dec. 31	Closing	17		8,288		26,902
Dec. 31	Closing	17	18,000			8,902

Income summary
Date	Item	Post. Ref.	Debit	Credit	Debit balance	Credit balance
Dec. 31	Closing			33,400		33,400
Dec. 31	Closing	17	25,112			8,288
Dec. 31	Closing	17	8,288			0