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The following information relates to TipTopTea for the year ended 30 June 2020. Accounts payable 82,500 Accounts receivable 7,500 Accumulated depreciation- Equipment 11,800 Bank Loan
The following information relates to TipTopTea for the year ended 30 June 2020.
| Accounts payable | 82,500 |
| Accounts receivable | 7,500 |
| Accumulated depreciation- Equipment | 11,800 |
| Bank Loan (due in 2025) | 38,000 |
| Capital | 105,400 |
| Cash at bank | 186,400 |
| Depreciation expense-Equipment | 8,600 |
| Drawings | 4,000 |
| Electricity expense | 7,500 |
| Equipment | 180,000 |
| Prepaid rent | 16,500 |
| Rent expense | 32,000 |
| Service revenue | 282,600 |
| Supplies | 3,900 |
| Unearned revenue | 19,200 |
| Wages expense | 135,400 |
| Wages payable | 42,500 |
Prepare the closing entries for TipTopTea as at 30 June 2020. Narrations are required. (5 marks)
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