Question

What would be the correct closing entries for the following:

1. The notes payable balance relates to a bank loan obtained in 2018 that is payable in full on august 31,2023. the loan agreement specifies that Clarke pay interest annually on august 31 at a rate of 7.05%. Clarke's bookkeeper made the proper entry for the first interest payment.
2. On September 20,2019, Clarke paid $53,952 for ads to run evenly over a 10-month period, starting October 1,2019.
3. In November 2019, Clarke received $129,320 from a client as a deposit on a major new engagement. As of December 31, 2019, Clarke had completed $41,715 of these services.
4. Clarke operates 5 days a week, Mondays through Fridays. Employees are paid each Monday, for hours worked through the previous Friday. On Monday, December 30, 2019, the last pay day in 2019, Clarke paid its employees for hours worked during the week of December 23-27. The employees then worked their regular schedule through the end of the year. Clarke’s payroll averages $10,325 per day.
5. On June 1, 2019, Clarke signed a lease to rent additional building space. On that date, Clarke prepaid the first 18 months of rent totaling $59,202. The prepayment covers the period June 2019 through November 2020. Note – Contrary to the company’s normal practice, Clarke’s bookkeeper recorded the prepayment into the Rent Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance.
6. Clarke performed $118,731 of engineering services for several clients in December 2019 that it has not yet billed, recorded or collected.
7. Clarke’s Office Supplies account at the beginning of 2019 had a balance of $14,320. In August, the company purchased an additional $25,095 of supplies. A physical count at year-end 2019 shows that $29,170 of the supplies remain on hand.
8. Clarke purchased its buildings in 2011 and its equipment in 2016. Clarke depreciates its fixed assets according to the straight-line method. For the buildings, it uses estimates of 40 years for the useful life and $180,000 for the salvage value. For the equipment, it uses estimates of 8 years for the useful life and $60,000 for the salvage value.
9. Clarke estimates that 8.77% of the 2019 year-end accounts receivable balance will not be collected.
10. The company’s income tax rate for the year is 25%. (Hint – The income tax rate is applied to the company’s income after all revenues and expenses have been considered except for the income tax charge.)

These are the adjusting entries:

Adjusting Journal Entry for December 19
1) Interest Expense	$5,576
Interest Payable		$5,576
2)Advertising	16,186
Prepiad Advertising		16,186
3) Unearned Revenue	41,715
Service Revenue		41,715
4) Salaries and Wages Expense	20,650
Salaries and Wages Payable		20,650
5) Prepaid Rent	36,179
Rent Expense		36,179
6) Unearned Revenue	118,731
Accounts Recievable		118,731
7) Supplies Expense	10,245
Supplies		10,245
8) Depreciation-Building	18,468
Depreciation-Equipment	83,797
Accumlated Depreciation-Building		18,468
Accumlated Depreciation-Equipment		83,797
9) Bad Debt Expense	44,496
Allowance for Doubtful Accounts		44,496
10) Tax	225,635
Provision of Tax		225,635

Answer 1

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	generally, closing entries are posted considering all the entries, not only adjusting entries.
	However, you asked based on adjusting entries only, giving below
Event	Account	Debit	Credit
C1	Service Revenue	$    41,715
	Income Summary		$ 41,715
	(being revenue account closed)
C2	Income Summary	$ 388,874
	Rent Expense	$    36,179
	Interest Expense		$    5,576
	Advertising Expense		$ 16,186
	Salaries and Wages Expense		$ 20,650
	Supplies Expense		$ 10,245
	Depreciation-Building		$ 18,468
	Depreciation-Equipment		$ 83,797
	Bad Debt Expense		$ 44,496
	Tax Expense		$225,635
	(being expense account closed)
C3	Retained Earning	$ 347,159
	Income Summary		$347,159
	(being income summary closed)