Question 2 (20 marks) Fast Food Corp sells a wide range of products to its customers. These products range from beverages to groceries and foodstuff. The following transactions, among others, appeared in the accounting records of Fast Food Corp for the month of January 2022:

Date Transaction details

2 Fast Food Corp purchased inventory for resale, on credit, amounting to R5 600, from Alaska (Pty) Ltd. Invoice no. 4502 was received.

4 A new vehicle, costing R120 000, was bought on credit from the Smart Dealership. Invoice no. F17 was received. Fast Food Corp will settle the amount in full within the next 45 days.

15 Inventory sold for R1 120, cash. Receipt no. 0011 was issued.

18 The owner of Fast Food Corp withdrew R2 600 cash from the business bank account for his own personal use.

19 A loan of R20 000 was obtained from ALB Bank. Cash was deposited in the business bank account. Receipt 0012 was issued.

20 Four coffee tables were purchased on credit for R760 each, from Tudor Enterprises, and Invoice no. E490 was received. These coffee tables will form part of the furniture of the business.

23 Goods worth R1 300 were returned that were previously bought on credit from City Stores. The merchandise had some expiry dates that were not indicated on the labels. Credit note A001 was received.

24 R150 was received from the ALB Bank as interest on their positive bank balance. Receipt no.0013 was received.

25 R4 500 was paid for salaries and wages. The payment was effected via an EFT. 26 R560 was paid to the municipality for water and electricity. Cheque no. 100 was issued.

Required:

Prepare the following journals (books of first entry) to account for the abovementioned transactions. (Note: do not prepare a General Journal, and ignore VAT and folios.)

2.1 Cash Payments Journal 2.2 Cash Receipts Journal 2.3 Creditors Journal 2.4 Creditors Allowance Journal