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4 April, 06:53

The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31 2017, the end of its fiscal year:

No. Account Title Debit Credit

101 Cash $ 18,000

126 Supplies 14,500

128 Prepaid insurance 2,000

167 Equipment 23,000

168 Accumulated depreciation-Equipment $ 6,500

307 Common stock 13,272

318 Retained earnings 33,600

319 Dividends 6,000

404 Services revenue 44,100

612 Depreciation expense-Equipment 2,000

622 Salaries expense 25,710

637 Insurance expense 1,852

640 Rent expense 2,955

652 Supplies expense 1,455

Totals $ 97,472 $ 97,472

Required:

1. Prepare the December 31, 2017, closing entries for Cruz Company.

2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company.

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Answers (1)
  1. 4 April, 07:12
    0
    1. Prepare the December 31, 2017, closing entries for Cruz Company.

    Dr. Cr.

    404 Services revenue 44,100

    Income Summary 44,100

    Income Summary 33,972

    612 Depreciation expense-Equipment 2,000

    622 Salaries expense 25,710

    637 Insurance expense 1,852

    640 Rent expense 2,955

    652 Supplies expense 1,455

    2. Prepare the December 31, 2017, post-closing trial balance for Cruz Company.

    Dr. Cr.

    101 Cash 18,000

    126 Supplies 14,500

    128 Prepaid insurance 2,000

    167 Equipment 23,000

    168 Accumulated depreciation-Equipment 6,500

    307 Common stock 13,272

    318 Retained earnings 33,600

    319 Dividends 6,000

    404 Services revenue 44,100

    612 Depreciation expense-Equipment 2,000

    622 Salaries expense 25,710

    637 Insurance expense 1,852

    640 Rent expense 2,955

    652 Supplies expense 1,455

    Totals 97,472 97,472
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