Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 | 11,700 | |
| 128 | Prepaid insurance | 2,000 | |
| 167 | Equipment | 23,000 | |
| 168 | Accumulated depreciationEquipment | $ 6,500 | |
| 301 | A. Cruz, Capital | 42,972 | |
| 302 | A. Cruz, Withdrawals | 6,000 | |
| 403 | Services revenue | 48,100 | |
| 612 | Depreciation expenseEquipment | 2,000 | |
| 622 | Salaries expense | 28,042 | |
| 637 | Insurance expense | 2,020 | |
| 640 | Rent expense | 3,223 | |
| 652 | Supplies expense | 1,587 | |
| Totals | $ 97,572 | $ 97,572 |
- Prepare the December 31 closing entries. The account number for Income Summary is 901.
- Prepare the December 31 post-closing trial balance. Note: The A. Cruz, Capital account balance was $42,972 on December 31 of the prior year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Introduction To Accounting
Authors: Peter Scott
2nd Edition
0198849966, 978-0198849964
