The fiscal year-end unadjusted trial balance for Lee Company is found on the trial balance tab. Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Lee Company uses a perpetual inventory system. Descriptions of items that require adjusting entries on January 31, 2019, follow. a. Store supplies still available at fiscal year-end amount to $2,250. b. Expired insurance, an administrative expense, for the fiscal year is $1,600. c. Depreciation expense on store equipment, a selling expense, is $6,900 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,430 of inventory is still available at fiscal year-end. Journal entry worksheet Record the entry to close income summary. Note: Enter debits before credits. Date Account Title ebit Credit Jan 31 Record entry Clear entry View general journal Journal entry worksheet 2 4 5 6 7 8 > Record the entry to close the withdrawals account. Note: Enter debits before credits. Date Account Title Debit Credit Jan 31 Record entry Clear entry View general journal Trial Balance January 31, 2017 Account Title Debit Credit Cash $ 8,350 11,100 6,750 2,600 69,000 Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation - Store equip. Accounts payable Common stock Retained earnings Dividends 31,050 12,000 7,000 30,000 4,500 Sales 122,000 Sales discounts Sales returns and allowances 3,700 3,900 37,000 Cost of goods sold Salaries expense 32,000 12,800 Rent expense Advertising expense 10,350 202,050 $ Total $ 202,050 Post-closing Dates: Jan 31 to: Jan 31 Lee Company Trial Balance January 31, 2019 Account Title Debit Credit Cash $ Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation - Store equip. Accounts payable Common stock 8,350 10,430 2,250 1,000 69,000 37,950 12,000 7,000 30,000 Retained earnings Dividends 4,500 Sales 122,000 Sales discounts 3,700 Sales returns and allowances 3,900 37,670 Cost of goods sold Depreciation expense - Store equip. Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Total 6,900 32,000 1,600 12,800 4,500 10,350 208,950 $ $ 208,950 Adjusted Dates: Jan 31 to: Jan 31 Lee Company Trial Balance January 31, 2019 Account Title Debit Credit $ 8,350 10,430 2,250 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation - Store equip. Accounts payable 1,000 69,000 37,950 12,000 7,000 Common stock Retained earnings 30,000 Dividends 4,500 Sales 122,000 Sales discounts Sales returns and allowances 3,700 3,900 37,670 6,900 Cost of goods sold Depreciation expense - Store equip. Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Total 32,000 1,600 12,800 4,500 10,350 208,950 $ $ 208,950