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 Required; Prepare the closing entries for TipTopTea as at 30 June 2020. Narrations are required.
Closing Entries on 30 June 2020
No | Accounts title | Debit | Credit |
1. | Service Revenue | 282,600 | |
Income Summary | 282,600 | ||
(to close Revenue accounts) | |||
2. | Income Summary | 183,500 | |
Depreciation Expense | 8,600 | ||
Electricity expense | 7,500 | ||
Rent Expense | 32,000 | ||
Wages Expense | 135,400 | ||
(to close expenses account) | |||
3. | Income Summary | 99,100 | |
Retained Earnings | 99,100 | ||
(to close Net Income balance of Income Summary) | |||
4. | Retained Earnings | 4,000 | |
Drawings | 4,000 |
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