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QUESTION

	QUESTION	20 Marks
	uChampion (uC) Shop commenced business on 1 May 2022.	$
May-22	The following transactions occurred during the first month of operations:
1	Jenny, the owner, invested cash into the business.	22000
1	Paid in cash for shop furniture.	4000
1	Prepaid in cash for a 6 month insurance policy effective from 1 May.	1440
6	Acquired shop equipment of total value on following terms.	6000
	Paid in cash for above shop equipment	2000
	The rest of the balance to be paid in 30 days	4000
22	Jenny withdrew cash from the business bank account for personal use.	400
31	Total amount billed to customers for services provided during the month on following terms	16000
	Received cash towards revenue	9600
	Credit revenue to be received in cash in next month	6400
31	Paid May salary expenses in cash.	1200
31	Accrued operating expenses for May to be paid in June.	1800
31	Depreciation expense on equipment for month of May	220
31	Calculate and record the expired insurance premium for May.	$?
	Required:
	Prepare the general journal entries to record the above transactions.	20 marks
	Narrations are required. Assume that GST does not apply.

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