On 7 May 2022, Scheff Ltd took a van to a mechanic for repairs and an upgrade. Upon collecting the van, the company received an invoice for $5,290 (including GST). The invoice included three items:

Repaired the van’s engine: $2,400 (excluding GST)

Fitted two new tyres for the van: $800 (excluding GST)

Installed an extra row of seats in the back of the van: $1,400 (excluding GST)

On 12 May 2022, Scheff Ltd paid the invoice.

Required:

Prepare the journal entries for (a) the invoice for repairs and upgrade to the van; and (b) the payment of the invoice.

Use the answer template below

Scheff Ltd’s General Journal:

Date

Account Names

Debit

Credit

7/5/2022

(To record an invoice for repairs and upgrade to a van)

12/5/2022

(To record payment of an invoice)