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Exercise #2 (3 marks) David Peters opened a coffee shop on 1 July 2012. The foll

ID: 2560745 • Letter: E

Question

Exercise #2 (3 marks) David Peters opened a coffee shop on 1 July 2012. The followin during the first month of operations ignore GST a. g transactions occurred 2 business cheque account with XYZ Bank. (1 mark) 2 Peters invested S30 000 in the business by depositing cash into a Paid $1200 for the first month's rent ( mark) July Prepare the general journal entries to record the transactions. Garden Supplies paid on 30 April 2011 the month's telephone bill of S170 plus GST. Write down the effect of this transaction in the General Journal. (1 mark) b.

Explanation / Answer

b)

Date Account Debit credit a July 2 Cash 30000 owners capital 30000 Being capital introduced] JUly 2 Rent expense 1200 cash 1200 [Rent paid]