The following adjusted trial balance contains the accounts andyear-end balances of Cruz Company as of December 31.
| No. | Account Title | Debit | Credit |
| 101 | Cash | $ | 18,000 | | | | |
| 126 | Supplies | | 10,200 | | | | |
| 128 | Prepaid insurance | | 2,000 | | | | |
| 167 | Equipment | | 23,000 | | | | |
| 168 | Accumulated depreciation—Equipment | | | | $ | 6,500 | |
| 301 | A. Cruz, Capital | | | | | 42,739 | |
| 302 | A. Cruz, Withdrawals | | 6,000 | | | | |
| 404 | Services revenue | | | | | 43,500 | |
| 612 | Depreciation expense—Equipment | | 2,000 | | | | |
| 622 | Salaries expense | | 25,361 | | | | |
| 637 | Insurance expense | | 1,827 | | | | |
| 640 | Rent expense | | 2,915 | | | | |
| 652 | Supplies expense | | 1,436 | | | | |
| Totals | $ | 92,739 | | $ | 92,739 | |
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1. Prepare the December 31, closing entries forCruz Company. Assume the account number for Income Summary is901.
2. Prepare the December 31, post-closing trialbalance for Cruz Company. Note: A. Cruz, Capital was$42,739 on December 31 of the prior year.
