Exercise $3-20($Algo$)$ Preparing closing entries and a post$-$closing trial balance LO P$6$

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 $14,400$

$128$ Prepaid insurance $2,000$

$167$ Equipment $23,000$

$168$ Accumulated depreciation$$Equipment $ $6,500$

$307$ Common stock $6,207$

$318$ Retained earnings $42,600$

$319$ Dividends $6,000$

$403$ Services revenue $36,700$

$612$ Depreciation expense$$Equipment $2,000$

$622$ Salaries expense $21,396$

$637$ Insurance expense $1,541$

$640$ Rent expense $2,459$

$652$ Supplies expense $1,211$

Totals $ $92,007$ $ $92,007$

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 $$42,600$ on December $31$ of the prior year.