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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

ekkarill92 answered 1 year ago
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