Rearranging Dirt Diggers provides earth moving services with large tractors. In August the following transactions were undertaken by Rearranging Dirt Diggers. Ignore GST.

Required

(a) Record all transactions directly into ledger T accounts and prepare a trial balance.

(b) Repeat requirement

(a) assuming that a GST of 10% needs to be added for all appropriate transactions.

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August 1 M. V. Soil invested $500 000 into Rearranging Dirt Diggers established to provide earth moving services to the building construction industry. 2 Purchased a tractor for $880 000 using $200 000 credit from L. Bateup and borrowing the balance from Big Australian Bank. 4 Transferred the amount owing to L. Bateup using online banking facilities to make a direct bank transfer. 5 Paid $2800 to M. Karim for two weeks rent to 14 August. 9 Charged Prestige Housing $12.000 for earth moving services. 10 12 M.V. Soil withdrew $2000 cash to meet personal expenses. Paid $2400 for advertising on local radio. 12 Received $7200 from Reliable Housing Builders for earth moving. 13 Charged Star Company $9600 and received $9000 from Hardie Company for earth moving services provided. 14 Received a bank transfer for $12 000 from Prestige Housing. Paid $4800 for fuel for the truck.