The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.

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: The Retained Earnings account balance was $42,600 on December 31 of the prior year.

\begin{tabular}{clrr} Number & & \multicolumn{1}{c}{ Account Title } & Debit \\ 101 & Cash & $18,000 & \\ 126 & Supplies & 8,300 & \\ 128 & Prepaid insurance & 2,000 & \\ 167 & Equipment & 23,000 & \\ 168 & Accumulated depreciation-Equipment & & $6,500 \\ 307 & Common stock & & 107 \\ 318 & Retained earnings & 6,000 & \\ 319 & Dividends & & 36,600 \\ 404 & Services revenue & 2,000 & \\ 612 & Depreciation expense-Equipment & 21,396 & \\ 622 & Salaries expense & 1,541 & \\ 637 & Insurance expense & 2,459 & \\ 640 & Rent expense & 1,211 & \\ 652 & Supplies expense & 85,907 & $85,907 \\ \hline \end{tabular} Prepare the December 31, post-closing trial balance for Cruz Company. Note: The Retained Earnings account balance was $42,600 on December 31 of the prior year