Recording Business Transactions: Importance and Impact of COVID-19

Recording
Business
Transactions
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
ASSESSMENT 1.............................................................................................................................1
PART 1............................................................................................................................................1
Decision makers and their need for accounting information:......................................................1
Advantage and Disadvantage of recording accounting information:..........................................2
PART 2............................................................................................................................................2
Journal entries with narration for the David wises:.....................................................................2
PART 3............................................................................................................................................3
Ledger and trail balance of Pearce & sons:.................................................................................3
PART 4............................................................................................................................................6
Income statement for Airman co.:...............................................................................................6
Impact of COVID 19 on company income statement items:.......................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The business transactions for the evens which includes transactions for goods, money, services
for the various parties for businesses. Business transactions are events which should measurable
for the money which are recorded for accounting system. Business transactions which are useful
for company’s for managing their activities which helps its for higher profitability for the
businesses. The company which has better performance for its activities which helps its for
higher profitability for the businesses. For example, the company purchases machinery for the
cash. It is the transaction for the company which it use for its activities which helps for higher
profitability for the businesses. These transactions company’s records for their financial
statements which includes liabilities, assets, income, expenses, profits etc. This report is based on
various company’s business records. This covers topics such as journal, ledger and trial balance.
Apart from this it also covers cash account and ratio analysis in comparison to competitors for
the businesses (Ando and et. al., 2016).
ASSESSMENT 1
PART 1
Decision makers and their need for accounting information:
Decision makers for the company's are who makes planning for running its activities for
its strategies which they are makes from financial statements for the business. Those who has
power for for make strategic decisions for acquisition, expansion, investments etc.
Tesco is the British multinational retail base company, it was found in 1919, headquarter
situated in UK. It provides its goods supermarkets, hypermarkets, retailers etc.
The company Tesco, which deals for retail sector has various decision makers for making
strategic decisions. The company has various decision makers which includes operational,
tactical, strategic etc. these use accounting statements for making decisions which are related for
company's activities. These are suing accounting statements for better performance for expenses,
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