Question

MBB CATERING SUPPLIES Ply. Ltd. aen: 780 088 423 290 ABN: 42 088 423 290 352 Boutique Boulevard Templestowe, 3107 SHARE CERTIFICATE This is to certify that Michael Bruce Brown is the holder of 12,000 ordinary shares in MBB Catering Supplies Pty. Ltd. on payment of $1 per share. Amount paid: $12,000 Date: 1 January 2020 OFFICE MEMORANDUM Date: 01/01/20 To: Michael Brown SUBJECT: 1.1 2. Michael Brown donated his motor vehicle to the firm. Original cost: $15,000. Current market value: $3,000 in exchange for ordinary shares @ $1 per share 3. Arranged an interest only loan with Grand Bank for $8,000; interest at 5% p.a.; payable quarterly. Principal amount to be repaid 31 December 2022. Loan amount deposited in account today. 4. Depreciate the vehicle equally over 10 years with no residual value. Signed: Michael Brown

Journalise the transactions.

Answer 1

Journal entries in the books of MBB Catering Supplies

Date	Journal entry	Debit	Credit
1jan 20	Cash	12000
	To share capital		12000
	(12000 Shares issued by MBB catering)
03/01/20	HD mixer	2700
	To Accounts payable		2700
	(Purchase of HD mixer from Kitchen Aid on credit)
15/01/20	Accounts receivable	950
	To sales		950
	(Sale of HD mixer to Organize Cafe and food store)
18/01/20	Kitchen Aid	2250
	To cash		2250
18/01/20	Double sided shelving	820
	Single sided shelving	420
	Single sided peg board shelving	380
	Freight	100
	To Accounts payable		1720
21/01/20	Accounts receivable
	To sale of ice cream manager it
25	Accounts payable	1651.2
	To cash		1651.2
06/02/20	Coffee machine	3100
	To Accounts payable		3100
08/02	Accounts payable	3038
	To Cash		3038
	(Paid to Roband for coffee machine purchase)
09/02	Drink machine	1440
	To Accounts payable		1440
11/02	Accounts receivable	1470
	To ice cream		850
	To drink machine		620
13/02	Wages	600
	Miscellaneous expenses	105
	To cash		705
15	Repairs	355
	To Accounts payable		355
16	Cash	1210
	To sale of drink machine		1210
19/02	Cash	560
	To advance from customer		560
19/02	Account payable	355
	To cash		355
	(Cash paid for repairs work)
26/02	Cash	2450
	HD mixer		950
	Coffee machineCoffee machine		1500
29/02	wages	425
	To wages payable		425