Milo is starting a small business. He will be selling coffee that he roasts and packages. He gives you source documents for the following transactions and asks you to create a set of financial statements from these source documents for him. Because this is a new business, there are no beginning balances.

As his accountant, your first step is to do the following:

• Prepare the 10 transactions below by posting to the general journal. You should use an Excel spreadsheet to accomplish this task. Use ACCT201_IP2_Journal_Ledger_Workbook_Template to complete your assignment. When you are finished, save your completed template and submit your assignment following the Individual Project assignment directions below.
• Review the Chart of Accounts here.
• Review this model assignment before beginning this assignment: ACCT201_IP2_Journal_Ledger_Example.

Transactions

1. Invested $100,000 cash in the business
2. Paid $125 cash for phone service
3. Purchased $45,000 equipment with a bank loan
4. Paid $3,500 cash for rent
5. Paid $6,000 cash for insurance
6. Purchased $2,500 of advertising on credit (Note: This is an expense to the company)
7. One of his customers, Cup of Joe, purchased $2,500 of coffee on account
8. Customer, Cup of Joe, paid $1,000 on their account
9. Milo paid in full for the advertising he purchased on credit in transaction #6
10. Sold coffee to another customer, Grandmas Bakery, for $6,000 and received cash

MILO T. JONES, COFFEE COMPANY CHART OF ACCOUNTS Account Number Account Name 100 CASH 110 ACCOUNTS RECEIVABLE 120 EQUIPMENT 210 ACCOUNTS PAYABLE 220 NOTES PAYABLE 310 MILO T. JONES, CAPITAL 400 COFFEE REVENUE 510 RENT EXPENSE 515 TELEPHONE EXPENSE 520 INSURANCE EXPENSE 530 ADVERTISING EXPENSE