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 3e7 Connon 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 $18,000 14,900 2.ee 23,eee $ 6,500 13,982 35,600 6,800 35,700 2,000 20,813 1,499 2,392 1,178 $91,782 $91,782 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 $35,600 on December 31 of the prior year. Complete this questions by entering your answers in the tabs below. Required: Required 2 Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901. View transaction lit Journal entry worksheet EN

Answer 1

1)
Date	General Journal	Debit ($)	Credit ($)
Dec.31	Services Revenue	$ 35,700
	Income Summary		$ 35,700
	(To close the revenue account)
Dec.31	Income Summary	$ 27,882
	Depreciation Expense- Equipment		$ 2,000
	Salaries Expense		$ 20,813
	Insurance Expense		$ 1,499
	Rent Expense		$ 2,392
	Supplies Expense		$ 1,178
	(To close the expense accounts)
Dec.31	Income Summary ( $ 35,700 (-) $ 27,882)	$ 7,818
	Retained Earnings		$ 7,818
	(To close income summary)
Dec.31	Retained Earnings	$ 6,000
	Dividends		$ 6,000
	(To close the dividends account )

CRUZ COMPANY Post Closing Trail Balance December 31
	Debit ($)	Credit ($)
Cash	$ 18,000
Supplies	$ 14,900
Prepaid Insurance	$ 2,000
Equipment	$ 23,000
Accumulated Depreciation- Equipment		$ 6,500
Common Stock		$ 13,982
Retained Earnings		$ 37,418
Totals	$ 57,900	$ 57,900
Note :
Beginning Retained Earnings	$ 35,600
Add: Net Income	$ 7,818
Less: Dividends	($ 6,000)
Ending Retained Earnings	$ 37,418