Answer:
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
Explanation:
