What would the closing entries be for these adjustment entries?
AJE #
Account Name
DR
CR
1
wages expense
45,700
wages payable
45,700
payroll taxes
2,910
payroll taxes payable
2,910
2
unearned consulting revenue
163,774
service revenue
163,774
3
sales revenue
136,200
accounts receivable
136,200
inventory
74,910
product cost of goods sold
74,910
4
bad debt expense
54,827
allowance for doubtful accounts
54,827
5
insurance expense
3,570
advertising expense
14,075
prepaid insurance
17,645
Question: What are the correct closing entries for the above adjustment entries?
Other relevant information that might help clear up some confusion:
For number 2, the original question reads as follows: The Unearned Consulting Revenue account has a balance before adjustment of $261,220 as of December 31, 2018. On May 1, 2018, a client paid CMC $148,400 cash in advance for a 14-month consulting services contract. CMC will earn revenue evenly over this 14-month period. This was the only prepayment received from clients during the entire 2018 fiscal year and recorded with a credit to Unearned Revenue. Of the remaining balance in Unearned Revenue (i.e. Beginning Balance at Jan 1, 2018), 70% of the work was completed by year-end.
Number 5 reads: CMC prepays for some insurance and advertising. The Prepaid Expense account has a balance of $26,774 at year-end but before adjustment. This balance includes $9,180 for an 18-month casualty insurance policy purchased on June 1, 2018. Of the remaining prepaid balance, 80% of the advertising has now been used. (Round to the nearest whole dollar.)
