Reference no: EM132751455
"Healthy Meals" is a company that delivers healthy food to aged care facilities where older people live. The following transactions took place at "Healthy Meals" during February 2020.
2020
February 2 The owner of "Healthy Meals", Mr. Brian Bruce purchased a portable fridge to keep food cold while he is transporting it. The total cost of the fridge was $7,000. Mr. Bruce still owes $5,000 to the supplier from whom he bought the fridge, after he made a payment of $2,000 immediately.
6 Mr. Bruce advertised the business in the local newspaper to attract more clients for the business. The total cost of the advertisement was $250.
10 Mr. Bruce paid his personal rent for the flat where he lives with his family by making use of the business bank account. The total rent that he paid was $700.
14 Mr. Bruce sent an invoice to "Aging is Fun", one of "Healthy Meals" biggest clients for a total amount of $2,000 for deliveries that "Healthy Meals" did in the first part of February 2020. The client will make a payment at the end of February 2020.
19 Mr. Bruce paid the rent for the building from which "Healthy Meals" operates the business. The total amount of rent for February 2020 amounted to $1,500.
28 "Aging is Fun" paid a total amount of $1,200 to "Healthy Meals".
REQUIRED:
Problem 1: Based on the information provided, record the necessary journal entries in template provided. Journals need to be formatted correctly and include a narration (explanation) for each journal entry.