In December 2019, the following transactions occurred in Macchiatos Coffee Roasters business that supplies cafs and also

In December 2019, the following transactions occurred in Macchiato’s Coffee Roasters business that supplies cafés and also sells direct to the public.

Required

(a) Prepare general journal entries for each of the above transactions and events.

(b) Post the entries to ledger T accounts and balance the accounts as at 31 December 2019.

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Dec. 2 Michael Macchiato invested $2 650 000 into the business of Macchiato's Coffee Roasters by purchasing a fully equipped coffee roasting business. The business acquired consisted of the following assets and liabilities. Land Building $1200000 1 000 000 Coffee roasting equipment Office equipment Accounts payable 420 000 60 000 30 000 5 Purchased some new roasting equipment on credit for $160 000. Collected cash from customers for the month, $220 000. 6 12 Paid the accounts payable owing on 2 December when Michael purchased the business. Purchased an insurance policy for the year for $6000 cash. 14 18 Purchased television advertising for the Christmas-New Year period for $8000 to be paid for in 30 days. 23 30 Collected fees in cash from customers for the Christmas-New Year period, amounting to $46 000. Michael withdrew $8000 cash in order to pay for private Christmas presents and parties.