Question
Delivery Dude is a business that delivers fast foods to people at their houses. The following transactions took place during January 2020 and the owner,
Delivery Dude is a business that delivers fast foods to people at their houses. The following transactions took place during January 2020 and the owner, Mr Mark Money has asked you assist him preparing journal entries for the following transactions:
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January | 3 | The business paid rent for January 2020 which amounted to $7,500.
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| 5 | Mr Money paid for his family to go on a trip to Hobart by making use of the bank account. The total amount that he paid for the trip was $7,100.
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| 8 | The business bought a new computer to record deliveries more efficiently. The computer was bought from Comp Works. The total cost of the computer was $2,700. Delivery Dude still owes $800 to Comp Works but paid the rest of the amount immediately when they bought the computer.
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| 14 | Services rendered income for the first part of the month was recorded. Cash income amounted to $11,800 and Credit income was $6,200.
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| 25 | Mr Money paid $600 to Comp Works for the computer that was purchased from Comp Works on January 8.
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| 28 | One of the clients that owes money to Delivery Dude paid an amount of $900 to settle their account. |
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REQUIRED:
Based on the information provided, record the necessary journal entries in template provided. Journals need to be formatted correctly and include a narration (explanation) for each journal entry.
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