Individual project
This assignment has 2 parts, as follows:
Explain the purpose of adjusting entries and closing entries. In a 1-2-page paper, not including the title and reference pages, detail what each accomplishes, and give examples of each.
Journalize the closing entries from the attached 10-column worksheet. Use the attached template to complete your General Journal
| Unadjusted | Adjusted | Income | Balance Sheet / | |||||||
| Trial Balance | Adjustments | Trial Balance | Statement | Owner’s Equity | ||||||
| Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |
| Cash | 10375 | 10375 | 10375 | |||||||
| Prepaid Insurance | 1000 | b) 200 | 800 | 800 | ||||||
| Supplies | 225 | a) 50 | 175 | 175 | ||||||
| Automobile | 15000 | 15000 | 15000 | |||||||
| Accum. Depr. | 1000 | c) 1000 | 2000 | 2000 | ||||||
| Franki Valley, Capital | 18000 | 18000 | 18000 | |||||||
| Franki Valley, Drawing | 400 | 400 | 400 | |||||||
| Commission Revenue | 8000 | 8000 | 8000 | |||||||
| Depreciation expense | 0 | c) 1000 | 1000 | 1000 | ||||||
| Supplies expense | 0 | a) 50 | 50 | 50 | ||||||
| Insurance expense | 0 | B) 200 | 200 | 200 | ||||||
| 27000 | 27000 | 1250 | 1250 | 28000 | 28000 | 1250 | 8000 | 26750 | 20000 | |
| net income | 6750 | 6750 | ||||||||
| 8000 | 8000 | 26750 | 26750 | |||||||
Explain the purpose of adjusting entries and closing entries. In a 1-2-page paper, detail what each accomplishes, and give examples of each.
