On 1 April 2018, Kenny’s Equipment Hire opened for operations. Kenny Kowslowski contributed the capital of the business of $720 000 cash. He has asked you to be record keeper for the business on a part‐time basis, and you initially establish the need for the following accounts (and numbers). Additional accounts may need to be added in the near future. GST is ignored.

During April the following transactions were undertaken by the business, including the initial investment by the owner.

Required

(a) Prepare general journal entries for the business for the month of April.

(b) Post these entries to appropriate T accounts and determine their balances.

(c) Provide an analysis of each transaction to explain each entry you have made in (a) above.

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Cash at Bank Accounts Receivable Land Building Motor Vehicles Hire Equipment Accounts Payable Mortgage Payable Kenny Kowslowski, Capital Kenny Kowslowski, Drawings Equipment Hire Income 100 110 120 130 150 170 220 250 300 310 320