Saturday, 8 February 2014

Exercise 4-3: Preparing closing entries and a post-closing trial balance L.O. C1, P2, P3 The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31, 2008, the end of its fiscal year. No. Account Title Debit Credit 101 Cash $ 18,000 126 Supplies 14,700 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation—Equipment $ 6,500 301 T. Cruz, Capital 45,449 302 T. Cruz, Withdrawals 6,000 404 Services revenue 50,000 612 Depreciation expense—Equipment 2,000 622 Salaries expense 29,149 637 Insurance expense 2,100 640 Rent expense 3,350 652 Supplies expense 1,650 Totals $ 101,949 $ 101,949 ________________________________________ Requirement 1: Prepare the December 31, 2008, closing entries for Cruz Company. (Omit the "$" sign in your response.) Closing entries: i. Closing entry for the revenue account: Date General Journal Debit Credit Dec. 31, 2008 Services Revenue 50000 Income Summary 50000 ________________________________________ ii. Closing entry for the expense accounts: Date General Journal Debit Credit Dec. 31, 2008 Income Summary 38249 Depreciation Expense-Equipment 2000 Salaries Expense 29149 Insurance Expense 2100 Rent Expense 3350 Supplies Expense 1650 ________________________________________ iii. Closing entry for the Income Summary: Date General Journal Debit Credit Dec. 31, 2008 Income Summary 11751 T. Cruz, Capital 11751 ________________________________________ iv. Closing entry for the withdrawals account: Date General Journal Debit Credit Dec. 31, 2008 T. Cruz, Capital 6000 T. Cruz, Withdrawals 6000 ________________________________________ Requirement 2: Prepare the December 31, 2008, post-closing trial balance for Cruz Company. (Omit the "$" sign in your response.) CRUZ COMPANY Post-Closing Trial Balance December 31, 2008 Debit Credit Cash $ 18000 Supplies 14700 Prepaid Insurance 2000 Equipment 23000 Accumulated depreciation-Equipment $ 6500 T. Cruz, Capital 51200 Totals $ 57700 $ 57700 ________________________________________


Exercise 4-3: Preparing closing entries and a post-closing trial balance L.O. C1, P2, P3

The following adjusted trial balance contains the accounts and balances of Cruz Company as of December 31, 2008, the end of its fiscal year.


No.
Account Title
Debit
Credit
101
Cash

$ 18,000




126
Supplies

14,700




128
Prepaid insurance

2,000




167
Equipment

23,000




168
Accumulated depreciation—Equipment




$  6,500

301
T. Cruz, Capital




45,449

302
T. Cruz, Withdrawals

6,000




404
Services revenue




50,000

612
Depreciation expense—Equipment

2,000




622
Salaries expense

29,149




637
Insurance expense

2,100




640
Rent expense

3,350




652
Supplies expense

1,650


 


Totals

$ 101,949


$ 101,949



Requirement 1:
Prepare the December 31, 2008, closing entries for Cruz Company. (Omit the "$" sign in your response.)

Closing entries:
i. Closing entry for the revenue account:
Date
General Journal
Debit
Credit
Dec. 31, 2008
 Services Revenue
50000

 
 Income Summary

50000


ii. Closing entry for the expense accounts:
Date
General Journal
Debit
Credit
Dec. 31, 2008
 Income Summary
38249

 
 Depreciation Expense-Equipment

2000
 
 Salaries Expense

29149
 
 Insurance Expense
 
2100
 
 Rent Expense

3350
 
 Supplies Expense

1650


iii. Closing entry for the Income Summary:
Date
General Journal
Debit
Credit
Dec. 31, 2008
 Income Summary
11751


 T. Cruz, Capital

11751


iv. Closing entry for the withdrawals account:
Date
General Journal
Debit
Credit
Dec. 31, 2008
 T. Cruz, Capital
6000


 T. Cruz, Withdrawals

6000


Requirement 2:
Prepare the December 31, 2008, post-closing trial balance for Cruz Company. (Omit the "$" sign in your response.)


CRUZ COMPANY
Post-Closing Trial Balance
December 31, 2008
 

Debit

Credit
 Cash
$
18000

 
 Supplies

14700

 
 Prepaid Insurance

2000

 
 Equipment

23000

 
 Accumulated depreciation-Equipment

 
$
6500
 T. Cruz, Capital

 

51200
Totals
$
57700
$
57700