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(3) The lease of equipment is for six (6) months from December 2019 to May 2020 (payment made to Hire Equipment of $12,000.00). As at
(3) The lease of equipment is for six (6) months from December 2019 to May 2020 (payment made to Hire Equipment of $12,000.00). As at 31 December 2019, only one month of lease should be expensed, and the rest of the five months is to be transferred to a current asset account 1-1321 Equipment - Short Term Lease asset. The remainder of this leased equipment will be expensed next year. Adjustment required: Create a general journal to transfer 5/6 of the total lease of equipment into a 1-1321 Equipment - Short Term Lease asset account (a new account). (4) A new investor, Bill Murray of Ghostbusting Ltd, sends an email to the company to purchase some shares in a private placement. After a phone call between the CEO and Bill Murray there is an agreement reached to go ahead with the private placement. Bill sends a direct debit of $42,000 cash for parcel of shares on 31 December 2019. An electronic share certificate is emailed to Bill as soon as the deposit clears into the company's bank account. Adjustment required: Create a general journal entry to record the private placement of shares
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