Roger’s Repair Services had the following transactions during April and May 2019.

Required

(a) Assuming that the accounting period is a calendar year, prepare general journal entries for Roger’s Repair Services during April and May 2020. Ignore GST.

(b) At the end of May, interest is owing on the loan taken out on 15 April with BCSA Bank. Should this interest be recorded by Roger’s Repair Services in its accounting records? Why or why not?

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April 1 7 8 11 15 18 Cash is received from a customer, D. Lloyd, $8200. Repair services are provided on credit to J. Turner for $12000. A bill for electricity consumed is received, $720. Supplies are requisitioned from storage for use in the general office, $280. A $50,000 loan is taken out with BCSA Bank. Interest is payable at 10% p.a. A cheque is issued in payment of the electricity account received on 8 April. Supplies are purchased on account from Harry's Hardware, $860. 23 25 Supplies are requisitioned for use in the office, $360. 30 Prepaid insurance costs have been used to the extent of $300.