Question: 1. Assume you manage a music store. From the following business activities, evaluate and describe how the transactions might be accounted for and recorded. Include examples of each transaction below showing journal entries and hypothetical amounts using T-accounts. Be sure to name each account used:
Receipt of cash from sale of CDs
Payment of cash for building rent
Payment of cash for a utility bill
Receipt of cash from payment on account
Describe how these transactions fit into the accounting cycle. How would the accounting process flow? Note: The preparation of financial reports is not required, just a narrative description.