Following are accounts and year-end adjusted balances of Cruz Company as of December 31.

Number	Account Title	Debit	Credit
101	Cash	$ 18,000
126	Supplies	12,800
128	Prepaid insurance	2,000
167	Equipment	23,000
168	Accumulated depreciationEquipment		$ 6,500
301	A. Cruz, Capital		45,860
302	A. Cruz, Withdrawals	6,000
403	Services revenue		41,600
612	Depreciation expenseEquipment	2,000
622	Salaries expense	24,253
637	Insurance expense	1,747
640	Rent expense	2,787
652	Supplies expense	1,373
	Totals	$ 93,960	$ 93,960

1. Prepare the December 31 closing entries. The account number for Income Summary is 901. 2. Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $45,860 on December 31 of the prior year.

Required 1

Prepare the December 31 closing entries. The account number for Income Summary is 901.

No	Date	General Journal	Debit	Credit
1	Dec 31	Services revenue	41,600
		Income summary		41,600
2	Dec 31	Income summary
		Rent expense		2,787
		Supplies expense		1,373
		Salaries expense		24,253
		Insurance expense		1,747
3	Dec 31	Income summary
		A. Cruz, Capital
4	Dec 31	A. Cruz, Capital	6,000
		A. Cruz, Withdrawals		6,000

Required 2

Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $45,860 on December 31 of the prior year.

CRUZ COMPANY
Post-Closing Trial Balance
December 31
	Debit	Credit
Cash
Supplies
Prepaid insurance
Equipment
Accumulated depreciationEquipment
A. Cruz, Capital
Totals	$0	$0