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).

2

>List of

Transaction

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

																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																						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

Transaction

s Receivable

1 Cash

50,000

3,000

3,700

40,000

2) 40,000

1,000

20,000 Balance

7,000

Account Debit Credit
2 Land

2,700 Cash

Cash $ 40,000

1,900

9) 1,000 Office Supplies
3 Office Supplies

10) 22,000 Land

$ 3,700

2,100

Share Capital
4 Cash

$ 3,700

$ 7,000 Service Revenue

of Land

5

Accounts Payable

Service Revenue $ 3,000 3) 3,700

7) 1,900

6 Rent Expense

Utilities Expense

Cash

7 Account Payable

Cash $ 1,900
8
9 Cash

Service Revenue Gain on Sale Share Capital Dividends

Account Receivable $ 1,000 4) 7,000 10) 2,000 1) 50,000 11) 2,100
5) 3,000
10 Cash

Land $ 20,000

$ 2,000

11

Cash $ 2,100

$ 2,000 $ 50,000 $ 2,100

Rent Expense Salary Expense Utilities Expense
6) 1,100 6) 400 6) 1,200

$ 400 $ 1,200

RedLotus Travel Inc.
		Debit			Credit		Assets											Cash			Account				Office Supplies					Land	Trial		Balance
	$	50,000		1)		5)		3)		2)				April 30th 2018
			Share Capital		$ 50,000		9)			10)
	4)
	$ 40,000				6)
	7)		Accounts Receivable
			$ 3,700
	Account Payable		11)			Accounts Payable
	$ 7,000		$ 33,300					$ 2,000			$ 20,000			Dividends
				Service Revenue
	Gain on Sale
	Account Receivable		$ 3,000		Liabilities				Rent Expense
		Salary Expense
			Utilities Expense
$	1,100
		$ 400
Salaries Exepense			$ 1,200
$ 2,700
	$ 1,900
1,800
	$ 1,000	Owners’ Equity
$ 22,000
	Gain on Sale of Land
Dividends				$ 2,100
	$ 10,000
	$ 1,100

Making the Statements

April 30th 2018

April 30th 2018

Assets

Balance

Account Debit Credit

Cash $ 33,300

Accounts Receivable $ 2,000

Office Supplies $ 3,700

Land $ 20,000

Accounts Payable

Share Capital $ 50,000

Dividends $ 2,100

Service Revenue $ 10,000

Gain on Sale of Land $ 2,000 Liabilities
Rent Expense $ 1,100

Salary Expense $ 1,200 April 30th 2018
Utilities Expense $ 400

$ 63,800

Income Statement	Balance Sheet
Trial Balance	Year Ending April 30th 2018
Revenues
Current Assets
Total Revenues
Expenses
Total Current Assets
Long Term Assets
$ 1,800
Total Expenses	Total Long Term Assets
Total Assets
Net Income
Statement of Retained Earnings	Current Liabilities
Total Liabilities
	$ 63,800	Shareholders’ Equity
Ending Retained Earnings
Total Shareholders’ Equity
Total Liabilities & SE