At December 31, 2020, account balances after adjustments for Sky Company are as follows:

Account Balances

Accounts (After Adjustment)

Cash $ 70,000

Supplies 10,000

Equipment 125,000

Accumulated DepreciationEquipment 30,000

Notes Payable 42,500

Accounts Payable 12,500

Skys Capital 50,000

Skys Drawings 20,000

Service Revenue 285,000

Advertising Expense 47,000

Depreciation Expense 10,000

Rent Expense 65,000

Salaries Expense 60,000

Maintenance Expense 3,000

Utilities Expense 10,000

Required:

Prepare the closing journal entries for Sky Company on December 31, 2020.