Question

In: Accounting

Imagine / assume you are running a merchandizing firm with a capital of $100,000-$500,000. You are...

Imagine / assume you are running a merchandizing firm with a capital of $100,000-$500,000. You are free to assume / invest within the range of $ 100,000 - $ 500,000, depending on the size of the business.

With this assumption you are required to prepare an accounting cycle (Journal, Ledger, Trial Balance, Income statements and Balance sheet.) as per the GAAP System by applying all accounting principles and concepts.

Further requirements:

1. Write down at least 20 transactions for a period (month or a quarter / an year) your company, which should include all, will satisfy all requirements for your business.  

  1. In the light of the above information analyze the business transactions in the Journal,
  2. Prepare ledgers and Trial Balance as on the last date of your business.
  3. On the basis of Trial balance prepare
  1. An Income Statements for the period
  2. Balance Sheets as on that date.

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

You are running a firm with the cost of capital of 8% and you have to...
You are running a firm with the cost of capital of 8% and you have to choose between two projects, A and B. Project A lasts six years and project B lasts eighteen years. The initial investments are $50M for project A and $65M for project B. Project A is going to generate $15M per year and project B is going to generate 12M per year. Both projects are renewable. Which project would you chose? (Hint: Use equivalent annual annuity...
Imagine you are planning to raise capital for the firm, you are wary about shareholders, which...
Imagine you are planning to raise capital for the firm, you are wary about shareholders, which accounting ratios could address the concerns of those stakeholders regarding efficiency of the assets and cashflow? Explain in detail.
A firm reported Net Income of $500,000. They have 100,000 shares of common stock with a...
A firm reported Net Income of $500,000. They have 100,000 shares of common stock with a price of $60 per share and 20,000 shares of preferred stock that pays a dividend of $6 per year. They have 2,000 convertible bonds with a face value of $1,000 and a 9% coupon rate. Each bond can be converted into 25 shares of stock. They have also issued 10,000 warrants that allows the owner to purchase stock for $50 per share. The tax...
A firm reported Net Income of $500,000. They have 100,000 shares of common stock with a...
A firm reported Net Income of $500,000. They have 100,000 shares of common stock with a price of $60 per share and 20,000 shares of preferred stock that pays a dividend of $6 per year. They have 2,000 convertible bonds with a face value of $1,000 and a 9% coupon rate. Each bond can be converted into 25 shares of stock. They have also issued 10,000 warrants that allows the owner to purchase stock for $50 per share. The tax...
You have the opportunity of purchasing a farm for $500,000. The owner will allow a $100,000...
You have the opportunity of purchasing a farm for $500,000. The owner will allow a $100,000 down payment with the remainder financed in one of the following ways. 1. Equal annual payments with an interest rate of 7% for 20 years. 2. Equal annual payments with an interest rate of 10% for 15 years. 3. Equal quarterly payments with interest rate of 8% for 15 years. 4. Equal principal payments each year with interest rate of 8% for 10 years....
You are planning to buy a house worth $500,000 today. You have $100,000 savings for the...
You are planning to buy a house worth $500,000 today. You have $100,000 savings for the down payment. A 30-year fixed-rate mortgage is 6.00% APR. a. Suppose if you take the 30-year loan, how much is your monthly payment? b. Show the payment for interest and principal separately for the first three months. c. Ten years later, the 30-year fixed-rate mortgage rate reduces to 3% APR. So you decide to refinance the debt with a new 30-year fixed-rate loan. How...
For this discussion, imagine you are running your own company. Consider how and why you would...
For this discussion, imagine you are running your own company. Consider how and why you would communicate your Corporate Social Responsibility (CSR) strategy with employees and with external stakeholders.
Imagine you and your friends are running in the neighborhood like electrons flowing through a circuit....
Imagine you and your friends are running in the neighborhood like electrons flowing through a circuit. Makeup stories that would serve as analogies for a parallel versus series circuits. Summarize the similarities and differences between the series and parallel circuits. Include your reasoning about what you think is happening. Describe the temperature response of resistors in a circuit. Are there any devices which take advantage of this property? If so, explain how they work in terms of the properties of...
- How many years will it take for $100,000 to grow to $500,000 if it is...
- How many years will it take for $100,000 to grow to $500,000 if it is invested at an annual interest rate of 9.15%? Round to the nearest 0.01. - You are offered a line of credit with a quoted interest rate of 20% with daily compounding. What is your effective annual interest rate? Round to the nearest 0.01%.
Imagine that a client has just inherited $100,000 and is considering investing in the company you...
Imagine that a client has just inherited $100,000 and is considering investing in the company you have analyzed by purchasing common stock. What is your recommendation ? The company has improved cash flow compared to last year. Buy or pass? Buy. Why? Explain in 150 to 200 words.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT