The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. No. Account Title Debit Credit 101 Cash $ 18,000 126 Supplies 12,100 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation—Equipment $ 6,500 307 Common stock 9,295 318 Retained earnings 34,600 319 Dividends 6,000 404 Services revenue 46,200 612 Depreciation expense—Equipment 2,000 622 Salaries expense 26,935 637 Insurance expense 1,940 640 Rent expense 3,095 652 Supplies expense 1,525 Totals $ 96,595 $ 96,595 1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901. 2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: The Retained Earnings account balance was $34,600 on December 31 of the prior year.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.
 

No. Account Title Debit Credit
101 Cash $ 18,000        
126 Supplies   12,100        
128 Prepaid insurance   2,000        
167 Equipment   23,000        
168 Accumulated depreciation—Equipment       $ 6,500  
307 Common stock         9,295  
318 Retained earnings         34,600  
319 Dividends   6,000        
404 Services revenue         46,200  
612 Depreciation expense—Equipment   2,000        
622 Salaries expense   26,935        
637 Insurance expense   1,940        
640 Rent expense   3,095        
652 Supplies expense   1,525        
  Totals $ 96,595   $ 96,595  
 

 
1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.
2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: The Retained Earnings account balance was $34,600 on December 31 of the prior year.

 

Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.
No
Date
General Journal
Debit
Credit
1
Dec 31
Services revenue
46,200
Income summary
46,200
2
Dec 31
Income summary
35,495 X
Salaries expense
26,935 X
Insurance expense
1,940 X
Rent expense
3,095 X
Supplies expense
1,525 X
Depreciation expense-Equipment
2,000 X
3
Dec 31
Income summary
10,705
Retained earnings
10,705
4
Dec 31
Retained earnings
6,000
Dividends
6,000
Transcribed Image Text:Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901. No Date General Journal Debit Credit 1 Dec 31 Services revenue 46,200 Income summary 46,200 2 Dec 31 Income summary 35,495 X Salaries expense 26,935 X Insurance expense 1,940 X Rent expense 3,095 X Supplies expense 1,525 X Depreciation expense-Equipment 2,000 X 3 Dec 31 Income summary 10,705 Retained earnings 10,705 4 Dec 31 Retained earnings 6,000 Dividends 6,000
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