Question 5: Transaction analysis and recording (10 Marks)

Transactions for Melbourne Consultants Ltd for the month of Jan 2020 are presented below:

Jan 2. Shareholders invested $180,000 cash in exchange for shares in the business.

Jan 2. Paid office rent of $4,800 for the month

Jan 3. Purchased vehicle costing $22,000 for cash.

Jan 6. Purchased equipment costing $10,000. $7,000 was paid in cash and the remainder on credit.

Jan 14. Purchased office supplies on account for $325.

Jan 15. Paid $2,500 for a one-year insurance policy.

Jan 20. Received $5,000 cash for consulting services performed.

Jan 23. Received $3,000 advance from a client for services that will perform next month.

Jan 28. Paid receptionist $4,200 salary for the month.

Jan 31. Paid dividends to shareholders of $700 which has been declared in October 2019.

Required

Journalise each transaction. Narrations are required