After some dabbling in local politics in Berlin & never having had a real job, Ex-Bndnis 90/Die Grnen politician Florian Schmidt decides to enter the real world. He sets up shop with Ex-AfD member Georg Pazderski, who has become disillusioned with politics. On July 01, 2020, they set up a 50:50 partnership called Buy, Split, Sell (BSS) which will buy multi-family dwellings in Berlin, convert the apartments into single units and then sell them to dentists from Pirmasens and Cologne. This is world with VAT VAT IS 16% and has not been added yet to values as per below. The partnership prepares monthly financial statements. They use the straight line method of depreciation. Instructions: Prepare all necessary journal entries, using the following format Dr Cash 6.000 Cr A/P 6.000 August 01, 2020 Having acquired the 2.000 square-meter building on Liebigstr. 34 in Berlin from Diese eG (all journal entries already properly recorded), BSS decides to offer new rental agreements to the current tenants, the Anarcha-Queer-Feminist collective for EUR 25 / square meter net starting September 01, 2020. In order to accelerate the collective's decision-making process, BSS acquires a used acoustic guitar from Michael Mller for 3.800 on account. The expected useful life is three years and the expected salvage value is 200. Starting on August 01, 2020, BSS's partners "entertain" the Anarcha-Queer-Feminist collective with free 24/7 Flamenco music in the building's courtyard. August 15, 2020 Using Georg Pazderski's private Paypal account, BSS settles the outstanding balance with Michael Mller. The partners agree not to refund these amounts to the partners. August 16, 2020 Georg uses his connection from his prior job to hook up the acoustic guitar to an acoustic warfare amplifier which BSS rents for one months for 2.000. Georg uses his private Paypal account again to prepay the rent. August 16, 2020 BSS's guitar is painted green with blue polkadots for 300, paid in cash. The paintshop does not increase the operating efficiency, capacity not the useful life of the guitar. August 30, 2020 The Anarcha-Queer-Feminist collective relents and signs the new rental agreement. No longer having any use for the guitar, BSS sells the guitar to Werner Landwehr for 3.600 in cash