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 | 9,800 | |
| 128 | Prepaid insurance | 2,000 | |
| 167 | Equipment | 23,000 | |
| 168 | Accumulated depreciationEquipment | $ 6,500 | |
| 307 | Common stock | 10,900 | |
| 318 | Retained earnings | 34,600 | |
| 319 | Dividends | 6,000 | |
| 403 | Services revenue | 32,000 | |
| 612 | Depreciation expenseEquipment | 2,000 | |
| 622 | Salaries expense | 18,656 | |
| 637 | Insurance expense | 1,344 | |
| 640 | Rent expense | 2,144 | |
| 652 | Supplies expense | 1,056 | |
| Totals | $ 84,000 | $ 84,000 |
- Prepare the December 31 closing entries. The account number for Income Summary is 901.
- Prepare the December 31 post-closing trial balance. Note: The Retained Earnings account balance was $34,600 on December 31 of the prior year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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