Question

Exercise 4-9 Preparing closing entries and a post-closing trial balance LO P2, P3 The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31, 2017, the end of its fiscal year. Credit Debit $18,000 12,000 2,000 23,000 $ 6,500 45, 747 No. Account Title 101 Cash 126 Supplies 128 Prepaid insurance 167 Equipment 168 Accumulated depreciation-Equipment 301 T. Cruz, Capital 302 T. Cruz, Withdrawals 404 Services revenue 612 Depreciation expense-Equipment 622 Salaries expense 637 Insurance expense 640 Rent expense 652 Supplies expense Totals 39,100 6,000 2,000 22,795 1,642 2,620 1,290 $91,347 $91,347 1. Prepare the December 31, 2017, closing entries for Cruz Company. Assume the account number for Income Summary is 901. 2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company. Answer is not complete. Complete this questions by entering your answers in the tabs below. Required 1 Required 2 Prepare the December 31, 2017, closing entries for Cruz Company. Assume the account number for Income Summary is 901. No Date General Journal Credit Debit 39,100 1 Dec 31 Services revenue Income summary 39,100 Dec 31 Depreciation expense-Equipment Salaries expense Insurance expense Rent expense Supplies expense 0000® 2,000 X 22,795 1,642 2,620 1,290 3 Dec 31 T. Cruz, Capital 45,747 X 45,747 x Dec 31 T. Cruz, Capital T. Cruz, Withdrawals 00

Answer 1

• Requirement 1

Closing entries

Date	General Journal	Debit	Credit
31-Dec	Services Revenues	$39,100
	Income Summary		$39,100
	(to close revenue account)
31-Dec	Income Summary	$30,347
	Depreciation expense Equipment		$2,000
	Salaries expense		$22,795
	Insurance expense		$1,642
	Rent Expense		$2,620
	Supplies expense		$1,290
	(to close expenses)
31-Dec	Income Summary	$8,753
	T Cruz Capital		$8,753
	(to close net income balance of income summary)
31-Dec	T Cruz Capital	$6,000
	T Cruz Withdrawals		$6,000
	(to close withdrawals)

• Requirement 2

	Post Closing Trail Balance
Accounts title	Debit	Credit
Cash	$18,000
Supplies	$12,000
Prepaid Insurance	$2,000
Equipment	$23,000
Accumulated Depreciation - Equipment		$6,500
T Cruz Capital		$48,500
Totals	$55,000	$55,000