Question

bottom row is total

Exercise 3-10 Preparing closing entries and a post-closing trial balance LO P7, P8 The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31, Credit Debit $ 18,000 11,800 2,000 23.000 No. Account Title 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation Equipment 307 Common stock 318 Retained earnings 319 Dividends 404 Services revenue 612 Depreciation expense-Equipment 622 Salaries expense 637 Insurance expense 640 Rent expense 652 Supplies expense Totals $ 6.500 2,820 41.600 6,000 43,200 2.000 25, 186 2.894 1,426 $94. 120 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 $41,600 on December 31 of the prior year. Complete this questions by entering your answers in the tabs below. Required 1 Required 2 Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901. View transaction list

Answer 1

Answers

[1] --Closing entries

Date	Accounts title	Debit	Credit
31-Dec-20	Service Revenue	$43,200
	Income Summary		$43,200
	(to close revenue accounT)
31-Dec-20	Income Summary	$33,320
	Depreciation expense - equipment		$2,000
	Salaries expense		$25,186
	Insurance expense		$1,814
	Rent Expense		$2,894
	Supplies expense		$1,426
	(to close expense)
31-Dec	Income Summary	$9,880
	Retained earnings		$9,880
	(to close net income)
31-Dec	retained earnings	$6,000
	Dividends		$6,000
	(to close dividends)

--[2] Post closing Trial Balance

Accounts title	Debit	Credit
Cash	$18,000
Supplies	$11,800
Prepaid Insurance	$2,000
Equipment	$23,000
Accumulated Depreciation - equipment		$6,500
Common Stock		$2,820
Retained earnings		$45,480
Totals	$54,800	$54,800