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?