The following is the Financial statements and I need you to complete the 20 journal entries

Prior year's financial statements:
	Underwriters Insurance Company
	Income Statement
	For the Prior Year
	Underwriting income:				GAAP	SAP
	Premiums earned				1,800,000	1,800,000
	Losses incurred				-950,000	-950,000
	Loss adjustment expenses incurred				-100,000	-100,000
	Other underwriting expenses [Policy acquis. expenses]				-326,000	-320,000
	Net underwriting gain				424,000	430,000
	Investment income:
	Interest income				162,000	162,000
	Dividend income				30,000	30,000
	Net investment income				192,000	192,000
	Other income:
	Gain (loss) from agents' balances recovered					22,000
	Gain (loss) from agents' balances charged-off					-19,000
	Income before dividends to policyholders				616,000	625,000
	Dividends to policyholders				-8,000	-8,000
	Income before taxes				608,000	617,000
	Income taxes				0	0
	Net income				608,000	617,000
	Underwriters Insurance Company
	Statement of Changes in Owners' Equity and Policyholders' Surplus
	For the Prior Year
					GAAP	SAP
	Contributed capital, beginning of year				610,000	610,000
	Contributions to capital				300,000	300,000
	Contributed capital, end of year				910,000	910,000
	Retained earnings [Unassigned funds], beg. of year				2,010,400	1,145,000
	Net income				608,000	617,000
	Dividends to shareholders				-10,000	-10,000
	Retained earnings [Unassigned funds], end of year				2,608,400	1,752,000
	Total equity [Policyholders' surplus], end of year				3,518,400	2,662,000
	Underwriters Insurance Company
	Balance Sheet
	As of the End of the Prior Year
	Assets:				GAAP	SAP
	Cash				144,500	144,500
	Premiums receivable [Agents' balances]				350,000	331,000
	Deferred policy acquisition costs				32,000	0
	Interest receivable				48,000	48,000
	Furniture and fixtures				618,400	0
	Bonds (i.e., held as an investment)				3,500,000	3,313,000
	Stocks (i.e., held as an investment)				723,000	723,000
	Total assets				5,415,900	4,559,500
	Liabilities:
	Loss reserves				1,212,500	1,212,500
	Loss adjustment expense reserves				325,000	325,000
	Unearned premiums				360,000	360,000
	Total liabilities				1,897,500	1,897,500
	Owners' equity (Policyholders' surplus):
	Contributed capital				910,000	910,000
	Retained earnings [Unassigned funds]				2,608,400	1,752,000
	Total equity [Policyholders' surplus]				3,518,400	2,662,000
	Total liabilities & equity				5,415,900	4,559,500

Journal -- Record the journal entries for the current year in the spaces below:

This section describes 20 journal entries that need to be recorded. The 20 journal entries are already described in parentheses. For example, the first transaction is "(Issued $300,000 of additional capital stock in exchange for cash.)" Each journal entry must be recorded using GAAP (in columns B-F) and a second time using SAP (in columns J-N). Record the appropriate journal entry in the space immediately above its description. The first three transactions are shown as examples. The first transaction involves issuing additional stock in exchange for cash and the answer is to debit Cash and credit Contributed Capital. Since this transaction is recorded in the exact same manner for GAAP and SAP purposes, the same accounts and amounts are recorded in the GAAP columns (i.e., columns B-F) and in the SAP columns (i.e., columns J-N). The second transaction is the collection of premiums that were owed to the insurer at the start of the currrent year. Some of these outstanding premiums were overdue more than 90 days (so, they were nonadmitted assets per SAP). Since GAAP included all overdue receivables in Premiums Receivable but SAP included only amounts overdue by 90 days of less, the GAAP and SAP journal entry for this transaction differs. Thus, SAP requires a gain be reported. The third transaction records that unearned premiums as of the start of the current year have been earned during the current year. Thus, the company's liability for unearned premiums decreases and its earned premiums increases. Journalize the remaining transactions.

GAAP

SAP

Account name

Debit

Credit

Account name

Debit

Credit

Dr:

Cash

750,000

Cash

750,000

Cr:

Contributed Capital

750,000

Contributed Capital

750,000

1.

(Issued $750,000 of additional capital stock in exchange for cash.)

Dr:

Cash

350,000

Cash

350,000

Cr:

Premiums Receivable

350,000

Agents' Balances

331,000

Cr:

Gain from Agents' Balances Recovered

19,000

2.

(Collected all of the premiums receivable shown on the prior year balance sheet; $19,000 were overdue > 90 days.)

Dr:

Cr:

3.

(Earned all of the unearned premiums shown on the prior year's balance sheet.)

Dr:

Cr:

4.

(Recognized as an expense all of the deferred policy acquisition cost shown on the prior year alance sheet.)

Dr:

Cr:

5.

(Paid all of the loss reserve reported on the prior year's balance sheet.)

Dr:

Cr:

6.

(Paid all of the loss adjustment expense reserve shown on the prior year's balance sheet.)

Dr:

Cr:

7.

(Underwrote $2,200,000 of policies. Collected $1,800,000 in cash and recorded the remainder as premiums receivable.)

Dr:

Cr:

8.

(Earned 75% of the premiums written in the current year [refer to transaction #7 for the amount of premiums written in the current year].)

Dr:

Dr:

Cr:

9.

(Paid policy acquisition costs equal to 20% of premiums written [refer to transaction #7]. GAAP expenses 90% of these expenses and defers the remainder.)

Dr:

Cr:

10.

(Incurred losses of $1,200,000 during the current year recording the full amount as a liability [payment will be recorded in transaction #12].)

Dr:

Cr:

11.

(Incurred loss adjustment expenses of $250,000 during the current year recording the full amount as a liability [payment will be recorded in transaction #13].)

Dr:

Cr:

12.

(Paid 75% of the losses incurred in the current year [refer to transaction #10 for the amount of losses incurrred in the current year].)

Dr:

Cr:

13.

(Paid 75% of the loss adjustment expenses incurred in the current year [refer to transaction #11 for the amount of loss adjustment expenses incurred in the current year].)

Dr:

Cr:

Cr:

14.

(Collected $150,000 of bond interest, including 100% of the interest receivable reported on the prior year balance sheet.)

Dr:

Cr:

15.

(Received $25,000 of dividends on stocks owed.)

Dr:

Cr:

16.

(Declared and paid a $10,000 policyholder dividend.)

Dr:

Cr:

17.

(Declared and paid an $16,000 dividends to shareholders.)

Dr:

Cr:

18.

(Adjusting entry: At year-end, $20,000 of Agents' Balances are overdue by more than 90 days.)

Dr:

Cr:

19.

(Adjusting entry: At year-end, bond interest earned but not yet collected is $45,000.)

Dr.

Dr.

Dr.

Dr.

Cr.

Cr.

Cr.

Cr.

Cr.

Cr.

Cr.

20.

(Closing entry to close revenue, expense, and dividend accounts.)

Hint: Record the closing entry after posting all other journal entries to the ledger and then use certain ending ledger balances to help you record this entry.