Prepare the general journal entries with narrations

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Problem 1: Prepare the General Journal entries, with narrations, for the following unrelated transactions of Terra Tory Pty Ltd which is registered for GST for all its products and services provided.

1. The owner contributes his personal motor vehicle valued at $37,500, a computer valued at
$6,000 and cash of $20,000 to the business
2. The amount owing by Paper Supplies Pty Ltd $2,398 inclusive of GST is to be written off as a bad debt
3. A computer of the business was sold for cash at its recorded value of $825 inclusive of GST
4. Drawings of goods by the owner totaled $495 inclusive of GST. The company uses a perpetual inventory system.
5. Interest of $67 was charged on an overdue account Perfect Pets for not paying its account within 30 days
6. $528 was received from Gotcha Supplies. These funds had previously been written off as a bad debt.

Reference no: EM132731548

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