If your student number ends with 3 , then the first journal entry and its posting would look like this (the rest of this document assumes your student number ends with 3 for all calculations that the case in the term project says to use the last digit of your student number): And its posting on the aceount is like this: But if the case is not about the first period in the life of the company, then you have to read the ease and look at the documents submitted by the owner to determine which was the first transaction of the month that needs to be recorded in the company's books. One good guide is to follow the sequence shown in the bank account statement: Bank AMD Canada statement of Account 2594 Dimple Crescent Toronto ON M3J 1P7 Account 3061-001-33478 Chequing Account Branch 3061 Statement Date April 30, 201X Bob fix-it-all 9709 Keele St, - Unit 14 (1) The amount must be equal to 100 times the last digit of your student number (lawyer) (2) The amount must be equal to 1,000 times the last digit of your student number (Bob's contribution) (1) The amount must be equal to 600 times the last digit of your student number (rent) (2) The amount must be equal to 720 times the last digit of your student number (insurance) (3) The amount must be equal to 50% of 530 times the last digit of your student number (inventory) (4) The amount must be equal to 100 times the last digit of your student number (promotion) (5) The amount must be equal to 70 times the last digit of your student number (publicity) The AJE will debit Rent Expense and will credit Prepaid Rent for one fourth of the amount paid because the pre-paid rent was for 4 months: 2) Once you have determined the opening balances of assets, liabilities and owners' equity accounts you can move on to read the case and 1) identify all economic events that happened in the period that will need to be recorded, 2) sort them chronologically, 3) identify all AJE that are needed at the end of the period, and 4) start with the first. transaction that needs to be recorded with a joumal entry. If the case is about the first period in the life of a company, you will identify the initial contribution made in exchange for company's shares. First read the case set up and then look for the figures that appear as deposited in the bank account to determine the amount of the transaction: The company launched on April 1, 2021. Bob had accumulated savings and his life partner, who is still working full time, offered to match his contribution to the firm in the form of a loan with an interest rate of 0.5% per month payable on the New Year day of the following year. Bob contributed. his savings in exchange for 50 of the shares (first 50 shares were issued) and Bob's partner matched with the same amount of cash. Bob deposited his contribution and his partner's matching inte. new corporate bank account Bob had set up with AMD Bank Canada. The bank account, a standard commercial chequing account that gave cheques returned with monthly statements for a monthly fee, can have overdrafts at a fixed cost per day the account is in red. In the situation illustrated above, the first transactions will be rent while insurance will be the second. To record both transactions the journal entries involving all three assets' accounts and their posting are: Looking at the documents in the ease you find the following and noticed an adjusting journal entry will need to be made at the end of the period (note how the number of the cheque used is the same that appears in the bank statement): Bob Thoron representing Bob fix-it-all Ltd. Agrees to pay Bob Thoron (the individual owner of the property where commercial activities are developed by Bob fix-it-all) the sum of (1) for the months of August. September, October, and November. This document acts as a receipt to both parties that the service has been agreed and paid in advance. D. B. Thioron Paid with Cheque \# 80