Question

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31 Credit Debit $18, eee 13,1ee 2,eee 23, eee lation- $ 6,5ee 12,935 34,600 No. Account Title 181 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciati 3e7 Common stock 318 Retained earnings 319 Dividends 484 Services revenue 612 Depreciation expense- 622 Salaries expense 637 Insurance expense 648 Rent expense 652 Supplies expense Totals 6,eee 36,600 2,eee 21,338 1,537 2, 452 1.288 $90,635 $90, 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

Answer 1

closing Entries for cz company credit Account Nome Service Revenue TO Income Summary CTO close sevenue account Dobit $ 35 600 36,600 Income summary S28535 To salonies Expense 5 21338 TO Insurance Expense 1537 TO Rent Expense 2452 To supplies expense 1203 TO Depreciation expense - Equipment 2000 Cto close expense account) Income summary ( 36600 -28535) $ 8065 TO Retained Eosnings $8065 to close Income Summary account Retained Earning TO Dividend CTO close the dividend account) F 6000 66000

CRUZ COMPANY Thal Balance As of December 31 credit Debit 180oo 13100 2000 23000 cash Supplies Prepaid Insurance Equipment Accumulated Dep. - Equipment common stock Retained earnings Torey $ 6500 $ 12935 $36665 56100 $ 56100 - Retained Earning = $ 34600 + 8065- 6000 $36665 =