AccountingI Chapter 4 Completing the Accounting Cycle The following adjusted tri
ID: 2537706 • Letter: A
Question
AccountingI Chapter 4 Completing the Accounting Cycle The following adjusted trial balance contains the accounts an , 2017, closing entries balances of Cruz Company as of December 31, 2017, the end of its fiscal year. (1) Prepare the Assume the account number for Income Summary is closing trial balance for Cruz Company. 901. (2) Prepare the December 31, 2017, post Debit Credit No. 101 Cash. 126 Supplies Account Title $19,000 13,000 3,000 $ 7,500 47,600 301 T. Cruz, Capital 7,000 404 Services revenue 44,000 3,000 . . . . 22,000 640 Rent expense 3,400 2.200 usted trial balance for Salon Marketing Co. follows. Complete the four right-most colum first entering information for the four closing entries (keyed I through 4) and second by ost-closing trial balance.Explanation / Answer
CLOSING ENTRIES ARE AS PER FOLLOWING :
NO TITLE DEBIT CREDIT
901 INCOME SUMMARY ACCOUNT 33100
612 TO DEPRECIATION 3000
622 TO SALARIES 22000
637 TO INSURANCE 2500
640 TO RENT 3400
652 TO SUPPLIES 2200
(BEING EXPENSES TRANSFERRED )
404 SERVICES REVENUE AC DR 44000
901 TO INCOME SUMMARY ACCOUNT 44000
(BEING INCOME TRANSFERRED)
301 T CRUZ CAPITAL A/C DR 7000
302 TO T CRUZ CAPITAL WITHDRAWL 7000
(WITHDRAWL TRANSFERRED TO CAPITAL ACCOUNT)
901 INCOME SUMMARY ACCOUNT DR 10900
301 TO T CRUZ CAPITAL ACCOUNT 10900
(INCOME TRANSFERRED TO CAPITAL ACCOUNT)
168 ACCUMULATED DEPRECIATION A/C DR 7500
167 TO EQUIPMENT A/C 7500
(DEPRECIATION TRANSFERRED TO EQUIPMENT)
TRIAL BALANCE AFTER CLOSING ENTRIES
CODE ACCOUNT TITLE DEBIT CREDIT
101 CASH US$ 19000
126 SUPPLIES 13000
128 PREPAID INSURANCE 3000
167 EQUIPMENT 16500
301 T CRUZ CAPITAL 51500
TOTAL 51500 51500
167
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