I need some help with the below accounting problem.
I plan to incorporate a sole-proprietorship business entity, which will be a service organization a residential group home for boys.
After you decide on a business, envision the core activities that will be performed at the start of operations. These can include:
1. Investing personal funds
2. Purchasing machinery or office furniture or both
3. Performing services or selling goods for cash
4. Performing services or selling goods on account
5. Paying utility and telephone bills immediately or later
You can also enter into more than five transactions. However, a minimum of the five transactions of the different types outlined above have to be entered into. Based on your research and analysis estimate the amounts for the transactions mentioned above.
Create a journal and a general ledger for your company. Determine the T-accounts that will be used and post the entry recording the effect of the transaction in the respective T-accounts. The date that you start the project will be the date your enterprise starts doing the business. Use dates when you record the transactions into the journal and the ledger.
The solution examines general ledger and t-accounts.