Chris and Jaime need to get started in business to generate enough cash flow to pay...

  

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Chris and Jaime need to get started in business to generate enough cash flow to pay their current debts and hopefully themselves someday. Right now, each of the members have part-time jobs to help them with cash while they work to start this business. They've decided not to take any salary for the first six months of the business to help manage cash flow. The partners hope to have their business ready to open on October 1, 2020 to take advantage of Rock and Ice season. They will use their current resources to fund business operations, but they know they will need additional resources to support additional inventory and equipment. Chris needs to start working on a business plan to present to potential lenders. Before considering entering into this venture, Jaime used her marketing expertise determine the services and target markets that they will enter. Based on this information, and their desire to start small utilizing each other's experience and availability they decide the following: The following will be their market: 1.) Retail outfitter- Consisting of specialty items needed for local outdoor enthusiasts. 2.) Equipment Rental 3.) Guide and group education Chris is an expert Rock and Ice Climber while Jaime is proficient at backpacking and paddling. In order to get their retail operations ready for October Chris and Jaime believe they will need the following equipment: Retail point of sale system; (cash register, inventory scanning equipment) Estimated Cost $5,000. Shelving and Racks: Estimated Cost $15,000 Inventory: Estimated Cost $50,000 Equipment: Estimated Cost of $25,000 Chris believes that the business will need $15,000 of available cash on hand. Required: 1. In the Adirondack-Wild-LLC worksheet open another worksheet naming it Chart of Accounts 2. In Column A Row 1 label; Accounts 3. In Column B Row 1 label; Debit/Credit 4. Create chart of account by entering any accounts you feel the business will need 5. In Adirondack-Wild-LLC open another worksheet naming it Trial Balance 6. Create a heading for the worksheet 7. Create a trial balance using the current account balances as of August 1, 2020. 8. In Adirondack-Wild-LLC open another worksheet labeling it; Cash Budget 9. Create a worksheet using the data provided, evaluating the amount of cash Adirondack-Wild- LLC will need to open its business on October 1, 2020 Date 7/1/20 Cash Account Name Chris Lake Capital Jaime Hudson Capital 7/1/20 Cash Note Payable 7/20/20 Prepaid Rent Cash 7/25/20 Truck Cash Auto Loan 7/15/20 Legal Expense Cash Debit $ 50,000.00 $ 50,000.00 $ 12,000.00 $ 20,000.00 $ 5,000.00 Credit $ 25,000.00 $ 25,000.00 $ 50,000.00 $ 12,000.00 $ 5,000.00 $ 15,000.00 $ 5,000.00 Chris and Jaime need to get started in business to generate enough cash flow to pay their current debts and hopefully themselves someday. Right now, each of the members have part-time jobs to help them with cash while they work to start this business. They've decided not to take any salary for the first six months of the business to help manage cash flow. The partners hope to have their business ready to open on October 1, 2020 to take advantage of Rock and Ice season. They will use their current resources to fund business operations, but they know they will need additional resources to support additional inventory and equipment. Chris needs to start working on a business plan to present to potential lenders. Before considering entering into this venture, Jaime used her marketing expertise determine the services and target markets that they will enter. Based on this information, and their desire to start small utilizing each other's experience and availability they decide the following: The following will be their market: 1.) Retail outfitter- Consisting of specialty items needed for local outdoor enthusiasts. 2.) Equipment Rental 3.) Guide and group education Chris is an expert Rock and Ice Climber while Jaime is proficient at backpacking and paddling. In order to get their retail operations ready for October Chris and Jaime believe they will need the following equipment: Retail point of sale system; (cash register, inventory scanning equipment) Estimated Cost $5,000. Shelving and Racks: Estimated Cost $15,000 Inventory: Estimated Cost $50,000 Equipment: Estimated Cost of $25,000 Chris believes that the business will need $15,000 of available cash on hand. Required: 1. In the Adirondack-Wild-LLC worksheet open another worksheet naming it Chart of Accounts 2. In Column A Row 1 label; Accounts 3. In Column B Row 1 label; Debit/Credit 4. Create chart of account by entering any accounts you feel the business will need 5. In Adirondack-Wild-LLC open another worksheet naming it Trial Balance 6. Create a heading for the worksheet 7. Create a trial balance using the current account balances as of August 1, 2020. 8. In Adirondack-Wild-LLC open another worksheet labeling it; Cash Budget 9. Create a worksheet using the data provided, evaluating the amount of cash Adirondack-Wild- LLC will need to open its business on October 1, 2020 Date 7/1/20 Cash Account Name Chris Lake Capital Jaime Hudson Capital 7/1/20 Cash Note Payable 7/20/20 Prepaid Rent Cash 7/25/20 Truck Cash Auto Loan 7/15/20 Legal Expense Cash Debit $ 50,000.00 $ 50,000.00 $ 12,000.00 $ 20,000.00 $ 5,000.00 Credit $ 25,000.00 $ 25,000.00 $ 50,000.00 $ 12,000.00 $ 5,000.00 $ 15,000.00 $ 5,000.00