Question 1 At the start of 2021, Henry opened an interior design business. The following were transactions related to the business for January 2021:

Jan 1 Jan 1 Jan 1 Jan 1 Henry invested $250,000 in the business. Paid $30,000 for three month's rent in advance. Borrowed $120,000 and signed a three-year 10% p.a. note payable. The interest is payable at the end of each year. Bought an equipment for $48,000 and a motor vehicle (MV) for $130,000. The equipment is depreciated using double-declining balance method while the motor vehicle is depreciated using the straight-line method. Other details include: Useful Life Residual Value ($) Equipment 4 years 5,000 MV 10 years 10,000 Jan 5 Jan 15 Jan 20 Bought $5,000 of supplies agreeing to pay by next month. $1,000 worth of supplies were defective. Henry returned them to the supplier and received full credit for their cost. Signed a Letter of Intent to buy a new equipment costing $88,000. No deposit was made. The new equipment will be delivered in March 2021. A customer prepaid $28,000 for services to be performed next month. Paid $1,200 for miscellaneous expense. Worker's salaries of $8,000 has yet to be paid. Jan 28 Jan 31 Jan 31 Note: No entry was made on the above transactions. Analyse the above and record the relevant entries for January 2021