The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31. No. Account Title Debit Credit 101
Cash $ 18,000 126
Supplies 9,600 128
Prepaid insurance 2,000 167
Equipment 23,000 168
Accumulated depreciation—Equipment $ 6,500 301
A. Cruz, Capital 40,872 302
A. Cruz, Withdrawals 6,000 404
Services revenue 48,100 612
Depreciation expense—Equipment 2,000 622
Salaries expense 28,042 637
Insurance expense 2,020 640
Rent expense 3,223 652
Supplies expense 1,587
Totals $ 95,472 $ 95,472
1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.
2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: A. Cruz, Capital was $40,872 on December 31 of the prior year.

Reliable electric is a regulated public utility, and it is expected to provide steady dividend growth of 5% per year for the indefinite future. its last dividend was $6 per share; the stock sold for $50 per share just after the dividend was paid. what is the company’s cost of equity? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Aminor has the legal right to repudiate