The following transactions occurred for Shekh's Automobile Painting Service during April and May 2025.

Required

(a) Assuming that the accounting period is a calendar year, prepare general journal entries for Shekh's Automobile Painting Services during April and May 2025. Ignore GST.

(b) At the end of May, interest is owing on the loan taken out on 15 April with Big Australia Bank. Should this interest be recorded by Shekh's Automobile Painting Services in its accounting records? Why or why not?

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April 1 Bank transfer received from a customer, D. Considine, $6500. 2 Rent of $1500 is paid for the month by bank transfer. 7 K. Richards car is painted bright red and she is charged for $10 800 on credit. 8 A bill for electricity consumed is received, $1640. 11 Supplies are requisitioned from storage for use in the spray painting process, $420. 15 A $60 000 loan is taken out with Big Australia Bank. Interest is payable at 8% p.a. 18 A bank transfer is made in payment of the electricity account received on 8 April. 19 A salary of $5300 is paid by electronic bank transfer. 23 Supplies are purchased on account from Prime Paint Suppliers, $2400. 25 Supplies are requisitioned for use in painting, $520. 30 Prepaid insurance costs have been used to the extent of $480. May 2 Owner contributes capital of $20 000, by transferring the amount from his personal account to the business' bank account. 2 Rent for the month is paid by bank transfer, $1500. 5 Spray painting equipment is purchased on account from Industrial Equipment, $42 000. 12 Shelving fixtures are purchased from Harry's Hardware Store for $3200; $600 is paid immediately with a direct debit, the remainder is due in July. 13 Painting services performed for clients for cash, $8200. 14 Payment on account is made by direct debit to Trade Suppliers, $12,000. 19 A salary of $5300 is paid by electronic bank transfer. 31 Insurance expired, $480.