Reference no: EM132917804

Your line manager has provided you with the following information:

A Sole Trader business incorporates as Horizons Programming Company that specializes in providing computer programming services and selling computer devices and accessories. The business has been established on 1st July 2021 without having a specialized accounting department or system. However, at the end of July, the business faces major difficulties and misunderstandings of the process of recording and journalizes the relevant economic transactions that have been done during the first month in an appropriate and standardized way.

In this task, you have to use the transactions from in order to:

Problem 1) Journalize the July transactions, by applying the double-entry book-keeping system of debits and credits. And record sales and purchase transactions in a general ledger.

Problem 2) Analyse transactions using double-entry bookkeeping appropriately and effectively. Your analysis should show the effects of transactions on the basic accounting equation and the progression toward preparing the trial balance. The analysis should include:

a) Which accounts does the transaction affect? (Names of individual accounts?)

b) What category does each of these accounts belong to? (Revenue, expense, asset, liability, or owner's equity?)

c) Is the value of the individual account going to increase or decrease as a result of the transaction?