LO 2 ***** EXERCISE 5-2 The ledger accounts after adjusting entries for Cruz Services are Practice Exercise 2 presented below. Show me HOW Journalize the following closing entries and number as steps 1 through 4. b. What is the new balance of A. Cruz, Capital after closing? Show your calculations. (Continued) PART 1: The Accounting Cycle for a Service Business Analyzing Business Transactions Owner's Equity + Revenue Expenses Assets Liabilities Capital + + Drawing + Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Wages Expense Cash Wages Payable (a) 540 A. Cruz, A. Cruz, Capital Drawing Bal 24,000 Bal 500 Professional Fees Bal. 5,875 Bal. 3,100 (a) 540 Bal. 10,200 Bal 3,640 CHAPTER ASSIG Insurance Expense (c) 420 Prepaid Insurance Bal. 990 (c) 420 Bal. 570 Depr. Expense, Equipment (b) 725 Equipment Bal. 18,125 Misc. Expense Bal. 160 Accum. Depr., Equipment Bal. 3,200 (b) 725 Bal. 3,925 BEBER