You open a consulting business on January 1st and must account for the following transactions during one
Question:
You open a consulting business on January 1st and must account for the following transactions during one month:
Day 1: You contribute $10,000 of your own money to the business for initial expenses.
Day 1: Hire an administrative assistant who will work Monday - Friday; pay: $500/week; payday: every two weeks. He begins on day 1.
Day 2: Take care of everyday business start-up issues:
Rent Office Space: You pay $6,000 in advance for the entire first year's rent and $500 as a security deposit.
Buy Insurance: you pay $600 for six months of coverage
Buy Office Supplies: you spend $100
Rent Office Equipment and Furniture: you pay $750 for a 3-month lease
Day 4: You staff a table at a Career Fair and secure 20 clients during the day; you charge $100/client for the advice you provide but offer a 10% discount for cash; half pay you money, the other half promise to pay at the end of the month (Career Fair lasts one day)
Day 12: You receive a $500 fee for making a luncheon presentation at the local Kiwanis Club.
Day 14: Payday for your administrative assistant for two weeks of work.
Day 17: Pay the contracting consultant $1000 to create a training program. The delivery date for program materials is February 15th.
Day 25: You sign a consulting contract that will begin February 1st and pay you $1,000 per month for the remainder of the year.
Day 27: Meet with the attorney to discuss copyright options for the training program the contracting consultant will create. Pay the attorney $500 ($250 per hour) to cover the cost of the meeting.
Day 29: Payday for your administrative assistant for two weeks of work.
Day 30: You secure a loan of $50,000 from your favorite bank and receive the money that day.
Determine:
Of those transactions listed above,
complete the Worksheet_Lesson3.docx Download Worksheet_Lesson3.docx as follows:
Step 1 – Use the Worksheet_Lesson3.docx Download Worksheet_Lesson3.docx document to list the following types of entries that would be made to an income statement:
Revenue
Direct Costs
Indirect Costs
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura