Question: From the following journal entries, create a general ledger and an unadjusted trial balance.

Week 4 Journal Entries

At this stage you have made a debit to Cash and a credit to Long Term Loan for a $100,000 loan at 6% annual interest owing. Using this loan, you have to make more journal entries to show what you bought to start your business idea (Links to the source provided also. If you found an asset on Amazon, add this link below the journal entry). These journal entries will be dated from January 25th to February 5th and there should be at least 10 journal entries made. On February 8th, if your stock price has increased you will record your first inflow of cash (debit) and sales revenue (credit) along with a debit to cost of goods sold and a credit to inventory. If your stock price has decreased, you will record a debit to Research & Development Expense and a credit to cash.

1) The multiplier is 1,000 when your stock price increases and when your stock price decreases, your multiplier is 500.

2) Your cost of goods sold is 50%. This means if you record $100 in sales revenue, the goods you sold cost you $50. You should make a debit to cash and a credit to sales revenue and then a debit to the cost of goods sold and a credit to inventory.

*If your stock has increased by a large amount and you are recording a lot of debits to cash, you must use the cash wisely. Do not simply have ~1 million in your cash T-Account.

Week 5 Journal Entries

1) This week your multiplier is 500 when your stock price goes up and when it decreases, you have to purchase cleaning supplies (due to Covid regulations) which is a current asset.

2) 20% of your sales are on account. This means you will record your sales revenue like normal but the debit entries will be accounts receivable and cash, 20% of the sales revenue total to accounts receivable and 80% to cash.

Week 6 Journal Entries

Use the following table to determine changes to your ongoing journal entries this week

Sales Revenue after 1 week	Multiplier	Increase in Salaries	Loss from Lawsuit
$0 - $1,999	10,000	None	None
$2,000 - $3,999	8,000	None	None
$4,000 - $5,999	6,000	None	None
$6,000 - $8,999	4,000	$5,000/month	None
$9,000 - $12,999	2,000	$7,500/month	None
$13,000 - $19,999	1,000	$10,000/month	$10,000
$20,000+	500	$15,000/month	$20,000

*25% of sales this week are on account. Make a different T-Account to record Week 6 Accounts Receivable. You should now have two Account Receivables T-Accounts, one for Week 5 and one for Week 6.

Week 7 Journal Entries

1) Your multiplier this week is 500. When your stock price decreases, use the same multiplier and record commission expense debit and credit cash.

2) You have to track the change in stock overnight (the difference between the closing price one day and the opening price the next day). When the price does increase, multiply by 100 and record a debit to cash and a credit to Paid-In Capital.

3) 20% of your sales are on account this week. 10% of your week 5 account receivables and 15% of your week 6 account receivables are determined to be uncollectible. Use the direct method to make this journal entry.

4) You have the option this week of purchasing a piece of machinery for $15,000. You can only make this purchase if you have enough cash. This machinery will reduce your cost of goods sold percentage to 40%, until then, the percentage remains at 50%.

Reading Week Details

1) Your multiplier this week is 1,000. When your stock price decreases, use 500 as the multiplier and you have to purchase cleaning supplies. This is a debit to "Cleaning Supplies" and a credit to Cash. All sales are cash sales this week.

2) This week you collect 80% of your week 5 account receivables and 50% of your week 6 account receivables. This is a debit to cash and a credit to account receivables. You can make this entry any day this week.

Week 9 Journal Entries

1) The multiplier this week is 500.

2) If you are a service based business, you now are about to engage in selling tangible items related to your business. This could be T-Shirts, Cell Phone Casings, etc. Going forward your sales will be 80% service revenue and 20% sales revenue. Of the sales revenue you record you will have to record a debit to cost of goods sold and a credit to inventory. This will be 25% of what you record as sales revenue.

3) If you are a sales based business, you will now also provide consulting services and record service revenue. Going forward, 80% of your revenue is sales and 20% is service. Your cost of goods sold calculation will be based off of the sales revenue total.

Week 10 Journal Entries

1) The multiplier this week is 1,000 and 20% of your sales revenue is on account. Keep the same percentages as week 9 for sales and service revenue.

2) If your stock price decreases, multiply by 500 and record a "Miscellaneous Expense" debit and Cash credit.

3) Any day this week, make a payment towards the loan if you haven't already. When you make the payment you must first calculate how much interest has accumulated on the loan and make that interest payment first which is a debit to interest expense and a credit to cash.

4) On Wednesday of this week, you must make this journal entry to show you either giving or receiving a loan with another student (it can be with someone from the other section of the course). This will be a note payable or note receivable in your journal. The amount is up to the students.

Continuing from the corrections (if any) made in part II, part III of the term assignment will add to the journal entries from weeks 4-10 with journal entries from weeks 11-14. In week 14, year end adjusting entries must be made if necessary. With journal entries and the general ledger complete, a trial balance, income statement, other comprehensive income statement, balance sheet, cash flow statement, and closing journal entries must be made.

Week 11 Entries

1) The multiplier this week is 500 and all sales are cash sales. When the stock price decreases, the multiplier is 100 and you will then record a debit to cash and a credit to paid in capital.

2) On Friday of this week you must purchase a 10-year bond with a face value of $20,000 and a price of 93.5 which pays interest semi-annually. The stated rate of interest on the bond is 8% and the market rate of interest on this date is 9%.

Week 12 Entries

1) The multiplier this week is 1,000 and 50% of your sales are on account. If the stock price decreases, use the same multiplier and record a debit to Cash and a credit to paid-in capital.

2) Each day this week you must purchase stock, both from the company you are tracking, and from other companies. This will be a debit to "Short-Term Investment - Company Name Shares" and a credit to Cash. When you make this purchase, take a screenshot of the price of your stock. You can purchase as many shares as you choose, just multiply the price by the number of shares to arrive at your journal entry total.

Week 13 Entries

1) The multiplier this week is 200. All of your sales are cash sales. If the stock price decreases, record a debit to cleaning supplies expense and credit supplies.

2) One of the short term investments you made last week you must sell this week and record the gain or loss from the sale. If you choose, you can sell more than one of these investments but not all.

Week 14 Details

You have to make your adjusting journal entries this week. Adjustments should be made to the following accounts if they exist for you:

a) Depreciation of tangible and intangible assets*

b) Market value adjustment on investments (stocks you've purchased but have not sold).

c) Accrued interest on original long-term loan and note payable or accrued interest revenue on note receivable

d) Income tax expense income tax payable if you have a positive net income when you make your income statement (Use a tax rate of 20%).

e) After Income Statement, Statement of Retained Earnings, Balance Sheet, and Cash Flow Statement are made, you have to make the closing journal entries. This will bring your Expense and Revenue accounts to $0 and you will create a Retained Earnings T-Account.

*Depreciation on long term assets (Use either straight line or double declining, Equipment life span is 15 years, Buildings 20 years, and intangibles amortization over 30 years, no salvage value).