Real Life Situation:

Mr. Johns started a new business. He needs to buy several office supplies and equipment to begin operating, but he has a tight budget. As a solution, he decided that instead of spending cash on a new work computer, we will sell his personal computer to his own business for S800. Also, we will start using his private car as a business car and begin treating expenses of that particular car, like gasoline, repairs, and monthly payment, as business expenses.

-Do you think that what Mr. Johns wants to do is acceptable according to accounting rules? If your answer is NO, explain why. If your answer is YES, explain how he would record those transactions in his books.