Case study of journalising
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Hey everyone, and welcome to our video today on our case study on journal entries. So what's today's video going to be about? We're going to look at a subject company today for our case study. It's called Legacy Realty.
And we're going to talk a little bit about what their business is, and what they do. So we're going to look at our company. And then we're going to look at some journal entry examples for this company. OK, so we're going to look at some case study transactions.
So let's learn a little bit about who our company is. So our case study company is Legacy Realty. So what type of company is legacy realty? It's a sole proprietorship.
That's a type of company that is owned by one single individual, and where that individual and the business are legally treated as the same. So what's the purpose of the business? This business owns, leases, and manages its own rental properties.
So it purchases houses and condominiums and leases them out to tenants. They also perform their own management of their units. And so where's the business located? It's in Washington DC. And they have a small staff of five people. So this is the company that we're going to be looking at during our case study.
So does our company need journal entries? What do you guys think? Does Legacy Realty need journal entries. The answer is yes. Yes, they do.
Why? Why does Legacy Realty need journal entries? Well, journal entries help us to track accounting events, determine specific changes to our accounts, and they allow the business to be able to tell our story. So journal entries are very important for a company in order to perform their accounting functions