1) Description of your business idea. Add any reason you have as to why you decided to pursue this, personal interest maybe? What country and city do you plan to operate in? (Submit Word Document).
2) Journal entries linked to T-Accounts in General Ledger. This starts on January 20th with the $100,000 loan at 6% annual interest owing. You have to make more journal entries to show what you bought to start your business idea (Links to the source provided also. If you found an asset on amazon then add this link below the journal entry). These journal entries will be dated from the 20th to February 2nd and there should be at least 10 journal entries made. On February 3rd you will record your first inflow of cash and sales revenue if your stock increased (From the publicly traded company you chose). (Submit Excel File).
*If your stock has increased by a large amount (Tesla for example) and you can fully pay off your loan, you must use the cash wisely now for you business. Do not simply have ~1 million in your cash T-Account.
3) Most recent annual report of your company. You can find this by doing a search for “Company Name Annual Report” or go to the company website and find a “For Investors” tab or something similar to this and the most recent annual reports should be listed. This is where you can access any publicly traded companys’ financial statements. (Submit PDF).
>List of s
: You and a few friends invest $ 0,000
to open a tutoring service business and issue ordinary share capital to the shareholders.
0,000
.
: The business buys office supplies on account, agreeing to pay $ 00
within 30 days.
of service revenue by providing services for customers. The business collects the cash.
which means you let some customers pay later.
: During the month, the business pays $ for the following expenses: rented equipment, $1, 0; employee salaries, $ ; and utilities, $ .
00
on account, which means to pay off an account payable.
: You paid $30,000 to remodel your downtown apartment.
from the student.
. You receive $ cash and makes a $2,000 gain on the sale of land.
: You declare a dividend and pay the shareholders $ cash
& s Receivable
50,000 3,000 3,700 40,000 2) 40,000 1,000 20,000 Balance 7,000 2,700 Cash 1,900 10) 22,000 Land $ 3,700 2,100 $ 3,700 $ 7,000 Service Revenue of Land
Accounts Payable Service Revenue Gain on Sale Share Capital Dividends $ 2,000 $ 2,000 $ 50,000 $ 2,100 $ 400 $ 1,200 April 30th 2018 Assets Account Debit Credit $ 63,800 Transaction
Transaction
1
5
Transaction 2: You purchase land and pay cash of $
4
Transaction
3
3,
7
Transaction 4: You earn $
7,000
Transaction 5: You perform service on account totaling $
3,000
Transaction
6
2,700
10
1,200
400
Transaction 7: You pay $
1,
9
Transaction
8
Transaction 9: In Transaction 5, you performed tutoring services for a student on account. The business now collects $
1,000
Transaction 10: You sell half of the land you bought for $
20,000
2
2,000
Transaction
11
2,100
Journal
Ledger
Journal Ledger
RedLotus Travel Inc.
Transaction
Debit
Credit
Assets
Cash
Account
Office Supplies
Land
Trial
Balance
1 Cash
$
50,000
1)
5)
3)
2)
April 30th 2018
Share Capital
$ 50,000
9)
10)
4)
Account Debit Credit
2 Land
$ 40,000
6)
Cash $ 40,000
7)
Accounts Receivable
9) 1,000 Office Supplies
3 Office Supplies
$ 3,700
Account Payable
11)
Accounts Payable
Share Capital
4 Cash
$ 7,000
$ 33,300
$ 2,000
$ 20,000
Dividends
Service Revenue
Gain on Sale
5
Account Receivable
$ 3,000
Liabilities
Rent Expense
Service Revenue $ 3,000 3) 3,700
Salary Expense
7) 1,900
Utilities Expense
6 Rent Expense
$
1,100
Utilities Expense
$ 400
Salaries Exepense
$ 1,200
Cash
$ 2,700
7 Account Payable
$ 1,900
Cash $ 1,900
1,800
8
9 Cash
$ 1,000
Owners’ Equity
Account Receivable $ 1,000 4) 7,000 10) 2,000 1) 50,000 11) 2,100
5) 3,000
10 Cash
$ 22,000
Land $ 20,000
Gain on Sale of Land
11
Dividends
$ 2,100
Cash $ 2,100
$ 10,000
Rent Expense Salary Expense Utilities Expense
6) 1,100 6) 400 6) 1,200
$ 1,100
Making the Statements
Income Statement
Balance Sheet
Trial Balance
Year Ending April 30th 2018
April 30th 2018
Revenues
Balance
Current Assets
Cash $ 33,300
Total Revenues
Accounts Receivable $ 2,000
Expenses
Office Supplies $ 3,700
Total Current Assets
Land $ 20,000
Long Term Assets
Accounts Payable
$ 1,800
Share Capital $ 50,000
Total Expenses
Total Long Term Assets
Dividends $ 2,100
Total Assets
Service Revenue $ 10,000
Net Income
Gain on Sale of Land $ 2,000 Liabilities
Rent Expense $ 1,100
Statement of Retained Earnings
Current Liabilities
Salary Expense $ 1,200 April 30th 2018
Utilities Expense $ 400
Total Liabilities
$ 63,800
Shareholders’ Equity
Ending Retained Earnings
Total Shareholders’ Equity
Total Liabilities & SE