The following accounts appear in the ledger of Nick's Natty Nails, a nail salon: Cash at bank; Accounts receivable; Salon equipment; Accounts payable; N. Kutikal, drawings; Salon revenue; Salaries expense; and Advertising expense.

Required

(a) Prepare the general journal entries to record the following transactions that occurred during April (ignore GST).

(b) Explain why you have made each of the journal entries to account for the transactions.

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April. 1 Purchased fingernail varnish drying equipment for $24 000. Paid $5000 deposit with a bank transfer and agreed to pay the balance in 30 days. 3 N. Kutikal withdrew $800 from the business to buy new clothes for a friend's twenty-first birthday party. 8 Paid salaries of $5400. 14 Paid a social media company $1200 so that an advertisement and links to Nick's Natty Nails website would appear in the social media feed of anyone that posted pictures of their fingernails and who lived within 10 kilometres of the salon. 19 Received $420 from customers who had purchased their services on credit. 23 Paid $2400 to creditors for nail varnish supplies that had been purchased on credit. 30 Earned $38 420 in salon revenue during the month. Of this, 80% was collected in cash and 20% will be paid within a month.