Following are accounts and year-end adjusted balances of Cruz Company as of December 31.NumberAccount Title101Cash126Supplies128Prepaid insurance167168EquipmentAccumulated depreciation-Equipment301A. Cruz, Capital302A. Cruz, withdrawals403Services revenue612Depreciation expense-Equipment622Salaries expense637Insurance expense640Rent expense652Supplies expenseTotalsDebit$ 18,000Credit10,1002,00023,000$ 6,50044,0406,00038,4002,00022,3871,6132,5731,267$ 88,940$ 88,9401. 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 A. Cruz, Capital account balance was $44,040 on December 31 ofthe prior year.

Step 1: The closing entries for the given accounts will be as follows:Debit services revenue and…

Answered: Following are accounts and year-end…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10MC

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