Below are selected transactions for ABC proprietorship, in its first month of business:

1. M. Achkar invests $70,000 cash to start the business. 2. Purchased three pieces of equipment for $160,000, paying $50,000 cash and signing a 5-year, 10% note for the remainder. 3. Purchased $5,000 supplies on credit. 4. Cash revenue amounted to $7,000. 5. Paid $500 cash for radio advertising. 6. Paid $800 on account for supplies purchased in transaction 3. 7. Mr. Achkar withdrew $2,100 from the business for personal expenses. 8. Paid $1,200 cash for rent for the current month. 9. Billed a customer for $575 for photocopy work done.

Instructions:

1) Journalize each transaction and identify each transaction by number.

2) The financial manager is responsible for making decisions that maximize shareholders' wealth. In doing so, they make use of time value of money concept. In your own words, briefly discuss the concept of time value of money making sure to cover the three elements used in the time value of money concept as well as the concepts of present value / future value and their respective uses. Give brief examples to support your answer. (Keep it to the point)

3) The output of an accounting system is a set of reports or financial statements needed by stakeholders. In your own few words, (i) give one example of a stakeholder, (ii) name 2 financial statements, (iii) state the purpose of or the information relayed by the two statements you named.