In: Accounting
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
Note: Enter debits before credits.
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Complete this questions by entering your answers in the tabs below.
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.
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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 |