Question

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. 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 Debit Credit $19,000 13,000 3,000 24,000 $ 7,500 10,000 37,600 7,000 44,000 3,000 22,000 2,500 3,400 2,200 $99,100 $99, 100 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 $37,600 on December 31 of the prior year.

What am I missing? My answer shows incomplete and incorrect. Can someone please help me solve it. Thank you.

Answer 1

Only common stock for $10,000 is missing in the post-closing trial balance.

Please see complete trial below

CRUZ COMPANY
Post-Closing Trial Balance
..December 31..
	Debit	Credit
Cash	$ 19,000.00
Supplies	$ 13,000.00
Prepaid insurance	$ 3,000.00
Equipment	$ 24,000.00
Accumulated depreciation—Equipment		$ 7,500.00
Retained earnings		$ 41,500.00
Common stock		$ 10,000.00
Totals	$ 59,000.00	$ 59,000.00