From the Following Items in the Income Statement Columns of the Worksheet

question 14

Essay

From the following items in the income statement columns of the worksheet of Monaghan Company at December 31, prepare the closing entries without explanation, assuming that a $450 withdrawal was made during the period.
$$\begin{array}{l}\text { Income Statement }\\\begin{array} { l c c } \text { Account } & \text { Debit } & \text { Credit } \\\text { Service Revenue } & & 900 \\\text { Wages Expense } & 550 & \\\text { Rent Expense } & 250 & \\\text { Supplies Expense } & 100 & \\\text { Insurance Expense } & \underline { 50 } & \underline {} \\\text { } & 950 & 900 \\\text { Net Loss } & & \underline { 50 } \\& \underline { \underline { \$950 } }&\underline { \underline { \$950 } }\end{array}\end{array}$$

---

Definitions:

Interdependent Parties

Entities or individuals that rely on each other and are mutually influenced by one another’s actions in pursuing their goals or interests.

Resolve Differences

The process of finding amicable solutions to disputes between parties with opposing viewpoints.

Interests

Activities, subjects, or pursuits that capture attention, engagement, or concern.

Context

The circumstances, background, or settings that influence and give meaning to an event, statement, or idea.