format the journals correctly and include a narration (explanation) for each journal entry.

Sahra Ong is the sole proprietor of ‘Vacation’ a beach clothing business. Sahra designs and sews fashionable beachwear that has a high SPF rating. Sahra launched a bespoke beachwear range twelve months ago, and thanks to a cover story of her business published in the inflight magazine of a large airline company, demand for her bespoke beachwear has increased significantly. Sahra is so busy with the growth of the business that she has been unable to attend to the bookkeeping, so she has recently hired Stone & Co Accounting Specialists Pty Ltd to take over the accounting function. You are the graduate accountant working at Stones & Co Accounting Specialists Pty Ltd and are now responsible for preparing the monthly journals for ‘Vacation’. The following is a list of transactions that took place during the month of July 2020 that need to be recorded in the General Journal. July 1 The business purchased a new sewing machine at a cost of $8,500. $2,500 was paid in cash and the remaining amount was paid using a loan from Wi Bank. July 2 The monthly shop & workshop rent of $2,500 was paid. July 5 A new range of SPF fabric was purchased from ‘World Fabrics Ltd’ on credit for $4,000. July 11 Sahra sold on credit 27 long sleeve Rashies for $58 each to ‘The Tornadoes’, a local beach volleyball club. The terms of the sale require full payment is made within 30 days. July 18 Sahra shut the shop at midday for an hour and paid $20 from the business bank account for lunch at ‘Waves’, a local beachside café. July 27 The first payment of $200 was paid off the loan that ‘Vacation’ borrowed from Wi Bank on July 1. July 28 ‘The Tornadoes’ beach volleyball club paid $522 off the amount they owe ‘Vacation’ for the purchase of the Rashies on July 11. Required: Record the General Journal entries in the proforma provided on the following page to record each of the above transactions where required. Remember to format the journals correctly and include a narration (explanation) for each journal entry.

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