Exercise 4-9 Preparing closing entries and a post-closing trial balance LO P2, P3

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		12,700
128	Prepaid insurance		2,000
167	Equipment		23,000
168	Accumulated depreciationEquipment				$	6,500
301	A. Cruz, Capital					45,870
302	A. Cruz, Withdrawals		6,000
404	Services revenue					41,200
612	Depreciation expenseEquipment		2,000
622	Salaries expense		24,020
637	Insurance expense		1,730
640	Rent expense		2,760
652	Supplies expense		1,360
	Totals	$	93,570		$	93,570

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 $45,870 on December 31 of the prior year.

No Date General Journal Debit Credit 1 Dec 31 Services revenue 41,200 Income summary 41,200 2 Dec 31 Income summary 31,870 Depreciation expense-Equipment 2,000 Salaries expense 24,020 1,730 Insurance expense Rent expense 2,760 Supplies expense 1,360 3 Dec 31 Income summary A. Cruz, Capital 4 Dec 31 A. Cruz, Capital A. Cruz, Withdrawals CRUZ COMPANY Post-Closing Trial Balance December 31 Debit Credit Cash $ 18,000 X: Supplies 12,700 Prepaid insurance Equipment This is a numeric cell, so please enter numbers only. Accumulated depreciationEquipmen A. Cruz, Capital Totals $ 55,700 $ 6,500