QUESTION (total 4 questions):

David has the following transactions in June 2022 (refer to the table at the bottom).

1. Prepare journal entries for the above transactions. You are not required to provide any narration for the journal entries.

2. Explain what is an asset?

3. Explain the differences between revenue expenditure and capital expenditure.

4. You are required to classify the following transaction as revenue expenditure or capital expenditure.

1. Purchase motor vehicle for business use
2. Payment of salaries expenses
3. Settlement of the company's income tax expense
4. Monthly office maintenance expenses
5. Paid office rental for June
6. The company invested in a shophouse

1	David started a business with $560,000 and deposited the amount in the bank.
2	Office equipment was purchased on credit from Scott Company for $25,000.
6	Inventory was purchased on credit from Icon Company for $15,000.
10	Paid $27,000 for office rental by cheque.
14	Cash sales of $36,000.
18	Cash purchase of inventory for $22,000.
20	The company settled the total outstanding amount of Scott Company.
22	Credit sales of $8,000 to Rock Company.
25	Paid $900 by cheque for the monthly office maintenance expense.
28	David withdrew $6,000 from the bank for personal expenses.
29	Rock Company settled the total amount with the company.
30	Paid $33,000 staff salary by cheque.