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

Number	Account Title	Debit	Credit
101	Cash	$ 18,000
126	Supplies	12,000
128	Prepaid insurance	2,000
167	Equipment	23,000
168	Accumulated depreciationEquipment		$ 6,500
307	Common stock		3,278
318	Retained earnings		40,600
319	Dividends	6,000
404	Services revenue		45,900
612	Depreciation expenseEquipment	2,000
622	Salaries expense	26,760
637	Insurance expense	1,928
640	Rent expense	3,075
652	Supplies expense	1,515
	Totals	$ 96,278	$ 96,278

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 $40,600 on December 31 of the prior year.