Following are accounts and year-end adjusted balances of Cruz Company as of December 31.NumberAccount Title101Cash126Supplies128Prepaid insurance167168301302403Services revenue612622EquipmentAccumulated depreciation-EquipmentA. Cruz, CapitalA. Cruz, WithdrawalsDepreciation expense-EquipmentSalaries expense637Insurance expense640Rent expense652Supplies expenseTotalsDebit$ 19,00013,000Credit3,00024,000$ 7,50047,6007,00044,0003,00022,0002,5003,4002,200$ 99,100$ 99,1001. Prepare the December 31 closing entries. The account number for Income Summary is 901.2. Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $47,600 on December 31of the prior year.

1. Closing Entries (December 31) Close Revenue Accounts to Income Summary:Debit Services Revenue…

Answered: Following are accounts and year-end…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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The accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…
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