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	11,700
128	Prepaid insurance	2,000
167	Equipment	23,000
168	Accumulated depreciation—Equipment		$ 6,500
307	Common stock		5,728
318	Retained earnings		40,600
319	Dividends	6,000
403	Services revenue		35,900
612	Depreciation expense—Equipment	2,000
622	Salaries expense	20,930
637	Insurance expense	1,508
640	Rent expense	2,405
652	Supplies expense	1,185
	Totals	$ 88,728	$ 88,728

1. Prepare the December 31 closing entries. The account number for Income Summary is 901.
2. Prepare the December 31 post-closing trial balance. Note: The Retained Earnings account balance was $40,600 on December 31 of the prior year.

Answer rating: 100% (QA)

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