Business Transactions Recording: Financial Statement Analysis

This report provides a detailed analysis of recording business transactions and preparing financial statements. It covers the steps involved in starting a new decorating enterprise, explains the role of upper management in accounting for a London Stock Exchange-listed company, and demonstrates the recording of journal entries and ledger accounts. The report also includes the creation of an income statement and an analysis of how earnings could be affected by events such as the COVID-19 outbreak. The document emphasizes the importance of a business strategy and the use of financial statements and balance sheets to understand a company's financial position, with references to relevant books and journals.

Recording business
transactions

Contents
Contents...........................................................................................................................................2
ASSESSMENT 1.............................................................................................................................1
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Summarize the steps involved in starting a new decorator enterprise.........................................1
Explain the upper leadership concerned in accounting for a company listed on the London
Stock market................................................................................................................................2
PART B...........................................................................................................................................3
1. Record the journal entries in the F Polk books........................................................................3
2. Make the ledger accounts in the books of Maurice and brothers............................................4
PART C...........................................................................................................................................7
Create a income statement for B Morre.......................................................................................7
b) Analyze how the earnings for 2022 could be increased or decreased in consideration of the
COVID–19 outbreak....................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

ASSESSMENT 1
INTRODUCTION
An economic business is a fiscal circumstances of a company that symbolises the entire
integrity of the company (Barry, 2016). Accountancy data are categorized into two parts: inputs
and present accounts. The financial position of the company is documented in the journal. The
starting and ending balances of the multiple agencies stated in activities are included in
accounting records. This document explains the steps involved in starting a redecorating business
for someone who wants to start one. Furthermore, as explained by Marks and Spencer, an upper
executive requires the assistance of accretion assessment. Following that, papers, payment
history, financial statements, and dividend income are generated depending on the purchasing
details.
PART A
Summarize the steps involved in starting a new decorator enterprise
David Green is a single businessman looking to begin a new decorating comapny. He is
completely aware of his duty regarding obligations which can arise in the course of the
enterprise. As a response, he requires assistance on a few points of the firm's launch.
 Creating diverse interconnection as every business must cooperate in activities that serve
the poor and create an effective environment. It fosters understanding and facilitates in
the establishment of a support network for the establishments. Expanding the quantity of
links is an additional advertising technique which will increase the amount of customer.
 David must create accounts on many social connecting websites, including Wikipedia,
Gmail, and Face book. It could make people more aware and possibly assist in the
procurement of activities (Brijs, 2016).
 Creating a corporate strategy as program is established to fulfil prosperity.
 Developing a business approach as a business approach is related to a brochure because it
outlines the business intent, competencies, and activities that it has performed or intends
to bring. It should also include knowledge about the next procedure, which would have
been performed successfully. It also contains data about the firm's management, like
credentials and professions.

 Evaluate the relevant aspects and in the décor sector, for example, curtains, decorations,
and so on.
 Building a blueprint so as in order to be viable in business, one should first set a basis
which will assist in the management of retail activities.
 Make a digital comprehensive plan as it define your short- and long-term objectives. It
could assist in understanding the potential and any hurdles that can occur that might
along the route. It would also aid in establishing limited timeframe, ensuring that
operations are finished in a timely manner (Martin and Tian, 2016).
Explain the upper leadership concerned in accounting for a company listed on the London Stock
market
Stakeholders are executives at various levels of an organisation's structure who make
decisions associated with financial information and assessment. Marks and Spencer is a
publically listed company on the Britain Stock Exchanges with a set of multiple decision takers
in charge of the company's advertising approach.
Accountants who are interested to work in accounting:
 Stockholders and executives can use quantitative methods to decide the amount of
involvement and comparing the company’s outcome to those of comparable firms.
 Government as the corporation's economic information is required by the nation's
government in it to pick up different kinds of taxes, notably national and indirect taxes
(Oh, 2018).
PART B
1. Record the journal entries in the F Polk books.
JOURNAL ENTRIES – F POLK

2. Make the ledger accounts in the books of Maurice and brothers.
a) GENERAL LEDGER – MAURICE BROTHERS
Cash Account
Bank Account

Van Account
Office Fixtures

Sharp Office (Creditor)
Toyota Co. Accountable
Loan Payable Account
Capital Account
b) Trial Balance

PART C
Create a income statement for B Morre

b) Analyze how the earnings for 2022 could be increased or decreased in consideration of the
COVID–19 outbreak
For several businesses, the year 2020 was among the most difficult and difficult in recent
memory. While many businesses were doing well in early 2020, the COVID-19 outbreak halted
development in most parts of the world by mid-March. From delays in routine operations to the
outright departure of certain businesses, there has been a lot going on. The company's spending
has risen, as per financial accounting. This indicated that spending had surpassed revenue.
Despite the fact that the business employees generate a large amount of revenue, it is insufficient
to satisfy its expenditures. This may be because to the COVID-19 epidemic that has reduced
demand for items, resulting in lower earnings. The projected repercussions range from minor
immediate impact, such as a corporate shutdown, to long-term and secondary implications, such
as changes in corporate policy. The importance of a company manager's grasp of the company's
impact and economic ramifications cannot be overstated (Ryu and Kim, 2016).
CONCLUSION
According to the previous study, adopting a business strategy is crucial when starting a
business. The association's data position is shown in the ledger, financial statements, and balance
sheets.

REFERENCES
Books and Journals
Barry, N., 2016. Business ethics. Springer.
Brijs, B., 2016. Business analysis for business intelligence. CRC Press.
Martin, B. and Tian, X., 2016. Books, bytes and business: the promise of digital publishing.
Routledge.
Oh, I., 2018. Mafioso, Big Business and the Financial Crisis: The State-Business Relations in
South Korea and Japan. Routledge.
Reid, W., 2020. The meaning of company accounts. Routledge.
Ryu, S. and Kim, Y.G., 2016. A typology of crowdfunding sponsors: Birds of a feather flock
together?. Electronic Commerce Research and Applications, 16, pp.43-54.