The first task is to determine what form of business organization she should choose.
Discuss the differences between a sole proprietorship and a corporation. What do you suggest for Monahan Media (MM) and why? Incorporate research from sources like: Journal of Accountancy, CPA Journal, Forbes, Wall Street Journal, Investopedia.com, or Yahoo Finance.
Cite your sources since she'd like to investigate these references as a follow up. Cutting and pasting large areas of text from the web or other source is unacceptable, please restate what you learn in your own words.
Credit will be based on the quality of the group discussion. Ideally, the class will form a consensus recommendation for Nicki.
Accounting Cycle, 3-part assignment:
PART 1:
a) Journalize the transactions.
b) Post the entries to T-accounts; compute the ending balance for each account.
c) Post the ending balances to Unadjusted Trial Balance columns of the worksheet.
PART 2:
d) Prepare the necessary adjusting entries and post them to the T-accts; compute adjusted ending balances where necessary.
e) Enter adjusting entries to the Adjustments columns of the trial balance.
f) Compute the adjusted balances and enter in the Adjusted Trial Balance columns of the worksheet. (All balances should reflect the ending balances in the T-accts from part d as a check.)
g) Transfer amounts from Adjusted TB columns to the Income Statement & Balance Sheet columns of worksheet.
h) Prepare the financial statements: Income Statement, Statement of Retained Earnings, and Balance Sheet.
PART 3:
i) Close the books by preparing the closing entries and post them to T-accounts.
j) Create the post-closing trial balance.
k) Provide a report to Nicki summarizing the first three months' operations. Make a recommendation regarding the feasibility of leaving her job at the sporting goods store.
PART 4:
Nick Monahan loves photography and wants to start his own company. He is single, 35 years old, and lives in an apartment in Cannon Beach, Oregon. He has a job as a clerk in a sporting goods store. His dream is to become a professional artist specializing in drawings and sketches foradvertising and promotional events, portraits, and commissioned art. He has saved $10,000 to start the business. He knows almost nothing about accounting and has hired you (on May 10) to teach his about accounting and provide his with accounting services.
The first task is to determine what form of business organization he should choose. Please provide a brief report explaining the different business forms and provide a recommendation you would suggest for his business,"Monahan Media" (MM).He needs this to be two pages, max. He doesn't like to read long, boring documents. So you'll need to be thorough but concise. Please include research from sources like: Journal of Accountancy, CPA Journal, Forbes, Wall Street Journal, Investopedia.com, or Yahoo Finance. Include your sources since he'd like to investigate these references as a follow up. Remember, he doesn't speak accounting fluently, so put the information you find into your own words. Cutting and pasting large areas of text from the web or other source is unacceptable. Quoted material must have quotations. Changing one or two words is not the same as summarizing someone else's ideas and citing the source.
Nickdeposited $10,000 into a business bank account for MM, commencing operations onJan 7.[He didn't know anything about forms of business organization at that time, but since he had some jobs lined up, he forged ahead with starting the business.]
It has been a busy three months. He's done a lot of work, but didn't know how to record anything, so mostly you are going to be looking at receipts and sheets of paper that Nick placed in a shoebox.It is now May 10; Nickwould like your advice in helping his to determine whetherhe can leave the sporting goods store to run MM full time. In addition to the transactions info in the shoeboxes, Nick informs you that hemight apply for a business loan of $25,000 and has been told by his banker that he needs a set of financial statements. The banker told his that the books should be closed as of March 31; that will be the end of business' fiscal year.
You have agreed to do the following:
a) Journalize the transactions and post the entries to T-accounts.
b) Create an unadjusted trial balance.
c) Prepare the necessary adjusting entries and post them to the T-accts.
d) Create the adjusted trial balance.
e) Prepare the financial statements: Income Statement, Statement of Retained Earnings, Balance Sheet.
f) Close the books by preparing the closing entries and posting to T-accounts.
g) Create the post-closing trial balance.
h) Provide a report to Nicksummarizing the first three months' operations. Make a recommendation regarding the feasibility of leaving his job at the sporting goods store. Provide advice about the business's ability to repay the loan if he borrows.
Attachment:- Assignment.rar