The accountant of the marketing firm, S. Preston, has posted adjusting entries (1) to (5) to the ledger accounts at 30 June 2025. All the income, expense and equity accounts of the entity are listed here in T-account form.

Required

(a) Prepare the closing entries of the marketing firm at 30 June 2025.

(b) Prepare the income statement and the statement of changes in equity for the year ended 30 June 2025.

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Accounts receivable Supplies 77 600 (5) 49 200 82 500 (1) 64 000 Salaries payable K. McLachlan, capital K. McLachlan, drawings Service revenue 166 200 88 600 (4) 10 800. 409 900 (5) 49 200 Salaries expense Supplies expense Depr. expense-buildings 192 000 (1) 64 000 (3) 59 100 (4) 10 800 Accum. depr. buildings Accum. depr. furniture Depr. expense furniture