QUESTION 1: Financial Accounting and Adjusting Entries

Part 1 - Recording Accounting Transactions

Stayzz' is a business that manages student accommodation and rentals. The following transactions took place during May 2020.

2020 May

2 may

The owner of, 'Stayzz', Mr Max Moodry, took his mother for lunch and used cash from the business bank account to pay $200 for this lunch.

7 may

Stayzz bought a delivery vehicle to transport students.The total cost of the delivery vehicle was $20,000.An amount of $5,000 was paid as a deposit and a loan was taken out for the remaining amount.

10 may

The business recorded Rental Income for the first part of May.Total cash received was $4,500 and an amount of $8,500 is still owed to 'Stayzz' by other clients.

15 may

Mr Moodry wants to expand the business and contributed an additional amount of $20,000 from his personal savings to the business.

25 may

'Stayzz' paid $2,000 to the bank to start paying off the loan which they took out when they bought the delivery vehicle on May, 7.

31 may

"Stayzz' bought stationery supplies from supplier on credit for a total amount of $450.These stationery supplies will be used in the administrative office at "Stayzz".

REQUIRED:

Based on the information provided, record the necessary journal entries in the template provided. Journals need to be formatted correctly and include a narration (explanation) for each journal entry.