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Problem Set 1
On July 1, 2021, the IT service company. started their business. A summary of transactions through December 31, 2021, is presented below.
1. Stockholders invested $50,000 in cash in the name of the business.
2. New computer equipment is purchased for $5,000 in cash.
3. Building rent is paid in advance for 3 months, $1,500.
4. Dividends of $500 were paid to existing shareholders.
5. Paid utility bills, $2000.
Required: Prepare a tabular analysis of the transactions using the Account Equation. Use the General Journal and General Ledger to record your entries.
Problem Set 2
1. What is Financial analysis and how it can help business?
2. A company facing drops in their business sales, as an IT how can you identify the issues, what technique will you be using to find insight into the problem?
