Reference no: EM132828930

Question - Sijo formed a window cleaning service business in Prince George, B.C., "Squeaky Clean". To start the business on January 1, 2020 he deposited $2,000 in a new bank account in the name of the proprietorship. The $2,000 consisted of a $500 loan from his father and $1,500 of his own money. Sijo rented equipment, purchased supplies, and hired other UNBC students to assist with cleaning. At the end of each month, he emailed or mailed bills to customers. On August 31, he was ready to return to university for the fall semester. Because he had been so busy, he had kept few records other than online bank statements, expense receipts and a list of amounts owed by customers. At August 31, Sijo's business bank account shows a balance of $140. He has $500 to collect in cash from customers as of August 31st as well. On August 7th, he collects $5,000 from various customers. Sijo made a payment from his business bank account June 6th for supplies he kept in inventory, paying a total of $500. At August 31, he still has an inventory of cleaning products and other supplies leftover that cost a total of $200. He paid his employees $2,000 on Aug 29th, and still owes them $300. His marketing campaign consisted of preparing brochures for advertising at a cost of $500 as paid on June 5th. Sijo rented some heavy duty cleaning equipment on May 1. The business signed a year-long lease on the equipment and paid $600 on May 1st. Sijo had a serious accident with equipment, resulting in a replacement repairs in cash of $600 for on May 30th. To transport employees, equipment and supplies a used truck and trailer was bought for $2,160 on May 1. Sijo depreciates the truck value using 30% of the asset's value annually. There was a bank transfer from the business bank account to Sijo's personal bank account of $100 on June 13th. Sijo also paid his father back on August 20th. Assume Sijo would like the proprietorship to continue to exist next summer. He also expects it to grow.

Required - Prepare the journal entries to record the transactions.