Assignment Details
Milo is starting a small business. He will be selling coffee that he roasts and packages. He gives you source documents for the following transactions and asks you to create a set of financial statements from these source documents for him. Because this is a new business, there are no beginning balances.
As his accountant, your first step is to do the following:
- Prepare the 10 transactions below by posting to the general journal. You should use an Excel spreadsheet to accomplish this task. Use to complete your assignment. When you are finished, save your completed template and submit your assignment following the Individual Project assignment directions below.
- Review the here.
- Review this model assignment before beginning this assignment: .
Transactions
- Invested $100,000 cash in the business
- Paid $125 cash for phone service
- Purchased $45,000 equipment with a bank loan
- Paid $3,500 cash for rent
- Paid $6,000 cash for insurance
- Purchased $2,500 of advertising on credit (Note: This is an expense to the company)
- One of his customers, Cup of Joe, purchased $2,500 of coffee on account
- Customer, Cup of Joe, paid $1,000 on their account
- Milo paid in full for the advertising he purchased on credit in transaction #6
- Sold coffee to another customer, Grandmas Bakery, for $6,000 and received cash
