Question

In: Accounting

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of...

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.

No. Account Title Debit Credit
101 Cash $ 18,000
126 Supplies 12,800
128 Prepaid insurance 2,000
167 Equipment 23,000
168 Accumulated depreciation—Equipment $ 6,500
301 A. Cruz, Capital 46,630
302 A. Cruz, Withdrawals 6,000
404 Services revenue 38,800
612 Depreciation expense—Equipment 2,000
622 Salaries expense 22,620
637 Insurance expense 1,630
640 Rent expense 2,600
652 Supplies expense 1,280
Totals $ 91,930 $ 91,930


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: A. Cruz, Capital was $46,630 on December 31 of the prior year.

repare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.

Journal entry worksheet

  • Record the entry to close revenue accounts.

Note: Enter debits before credits.

Date General Journal Debit Credit
Dec 31

Complete this questions by entering your answers in the tabs below.

  • Required 1
  • Required 2

Prepare the December 31, post-closing trial balance for Cruz Company. Note: A. Cruz, Capital was $46,630 on December 31 of the prior year.

CRUZ COMPANY
Post-Closing Trial Balance
December 31
Debit Credit
Totals $0 $0

Solutions

Expert Solution

Solution

Closing Entries
Date Accounts and Explanations Debit Credit
Dec-31 Service revenue $    38,800.00
Rent revenue 0
Income Summery $    38,800.00
(Revenue accounts closed)
Dec-31 Retained earnings $    30,130.00
Depreciation expense—Equipment $       2,000.00
Salaries expense $    22,620.00
Insurance expense $       1,630.00
Rent expense $       2,600.00
Supplies expense $       1,280.00
(Expenses Accounts closed)
Dec-31 Income Summery $       8,670.00
A. Cruz, Capital $       8,670.00
(To close income summery)
Dec-31 A. Cruz, Capital $       6,000.00
A. Cruz, Withdrawals $       6,000.00
(To close Dividend account)

Requirement 2

CRUZ COMPANY
Post-Closing Trial Balance
December 31
Debit Credit
Cash $ 18,000.00
Supplies $ 12,800.00
Prepaid insurance $ 2,000.00
Equipment $ 23,000.00
Accumulated depreciation—Equipment $ 6,500.00
A. Cruz, Capital $ 49,300.00
Totals $ 55,800.00 $ 55,800.00

Related Solutions

The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of...
The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. No. Account Title Debit Credit 101 Cash $ 18,000 126 Supplies 10,200 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation—Equipment $ 6,500 301 A. Cruz, Capital 42,739 302 A. Cruz, Withdrawals 6,000 404 Services revenue 43,500 612 Depreciation expense—Equipment 2,000 622 Salaries expense 25,361 637 Insurance expense 1,827 640 Rent expense 2,915 652 Supplies expense 1,436 Totals $ 92,739 $...
The following adjusted trial balance contains the accounts and balances of Cruz Company as of December...
The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31, 2015, the end of its fiscal year. No. Account Title Debit Credit 101 Cash $ 18,000 126 Supplies 8,400 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation—Equipment $ 6,500 301 T. Cruz, Capital 42,725 302 T. Cruz, Withdrawals 6,000 404 Services revenue 37,000 612 Depreciation expense—Equipment 2,000 622 Salaries expense 21,571 637 Insurance expense 1,554 640 Rent expense 2,479 652 Supplies...
The year-end adjusted trial balance of the Corporation included the following account balances:
  The year-end adjusted trial balance of the Corporation included the following account balances: Retained earnings $325,000 Service revenue 741,000 Salaries expense 396,000 Rent expense 27,000 Interest expense 5,000 Dividends 200,000 Prepare the closing entries. 34. $________   In preparing the closing entries for the temporary accounts, how much should Retained earnings be credited? 35. $________   In preparing the closing entries for the temporary accounts, how much should Retained earnings be debited? 36. $_________ After closing the accounts, what is the...
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of...
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31. Unrecorded depreciation on the trucks at the end of the year is $7,956. The total amount of accrued interest expense at year-end is $8,000. The cost of unused office supplies still available at year-end is $1,600.    1. Use the above information about the company’s adjustments to complete a 10-column work sheet. 2a. Prepare the year-end closing entries for Dylan Delivery Company...
The following is a list of the accounts and balances taken from the adjusted trial balance...
The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances. Meilleur uses a periodic inventory system and the earnings approach to recognize revenue. Account Balance Dec. 31 1 Accounts payable $15,000 2 Accounts receivable 30,000 3 Accumulated depreciation—building 15,500 4 Accumulated depreciation—equipment 10,000 5 Advertising expense 4,500 6 Building 84,600 7 S. Meilleur, capital...
The following accounts and balances are taken from Moore Company's adjusted trial balance: Accounts Payable $...
The following accounts and balances are taken from Moore Company's adjusted trial balance: Accounts Payable $ 11,000 Accounts Receivable 3,200 Accumulated Depreciation 1,600 Depreciation Expense 1,700 Dividends 2,100 Insurance Expense 2,200 Interest Revenue 1,440 Prepaid Insurance 2,220 Retained Earnings 10,400 Salary Expense 23,100 Service Revenue 35,800 What is the ending balance in Retained Earnings after the closing entries are completed? A. $18,540 B.$8,140 C.$10,240 D.$ 37,240
Blossom Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $37,760...
Blossom Company shows the following balances in selected accounts of its adjusted trial balance. Supplies $37,760 Supplies Expense 7,080 Accounts Receivable 14,160 Dividends 25,960 Retained Earnings 82,600 Service Revenue 127,440 Salaries and Wages Expense 47,200 Utilities Expense 9,440 Rent Expense 21,240 Prepare the remaining closing entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not...
The following table shows the balances from various accounts in the adjusted trial balance for UniLink...
The following table shows the balances from various accounts in the adjusted trial balance for UniLink Telecom Corp. as of December 31, 2020: Debit Credit a. Interest income $ 29,600 b. Depreciation expense, equipment $ 88,000 c. Loss on sale of office equipment 60,200 d. Accounts payable 101,600 e. Other operating expenses 235,600 f. Accumulated depreciation, equipment 184,400 g. Gain from settling a lawsuit 102,400 h. Cumulative effect of change in accounting principle (pre-tax) 152,400 i. Accumulated depreciation, buildings 400,400...
The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the...
The balances for the accounts listed below appeared in the Adjusted Trial Balance columns of the work sheet. Indicate whether each balance should be extended to (a) the Income Statement columns or (b) the Balance Sheet columns.       (1)    Salaries Payable   _____ (7)    Kim Lee, Drawing   ____         (2)    Fees Earned   ______ (8)    Equipment   ____         (3)    Accounts Payable   _____ (9)    Accounts Receivable   ____         (4)    Kim Lee, Capital   ______ (10)    Accumulated Depreciation   ____         (5)    Supplies Expense   _____ (11)    Salary Expense   ____        ...
The following accounts and balances are taken from Moore Company's adjusted trial balance: Accounts payable $9000...
The following accounts and balances are taken from Moore Company's adjusted trial balance: Accounts payable $9000 Accounts Receivable $2800 Accumulated depreciation $1200 Depreciation Expenses $1700 Dividends $2100 Insurance expense $2500 Intrest revenue $1440 Prepaid insurance $2120 Retained earnings $10000 Salary expenses $26100 Service revenue $38800 What is the ending balance in retained earnings after the closing entries are completed? A. $7840 B. $40240 C. $9940 D. $17840
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT