Using voice-over PowerPoint or YouTube, present and discuss the type of organization you selected in Week 1, the chart of accounts you plan to use in your company and the internal controls you would set up for your company.
Writing and interpreting results is a large part of your learning experience. These assignments are designed to improve your use of technology and communication skills. You will now be sharing your ideas with your classmates. Create a PowerPoint presentation discussing the key elements of the writing project. You may use the voice-over feature in PowerPoint or YouTube to present your PowerPoint.
You will upload a copy of your PowerPoint or the YouTube link to this discussion board AND comment to at least 1 other student on his/her presentation that you watched. Please be sure the audio is clear and the file or link is accessible in the Week 4 Presentation discussion board.
ONLY POWERPOINT. NO VOICE WITH A SHEET IN WHAT I HAVE TO SAY WHEN I’M DOING VOICE OVER. PLEASE PLEASE PLEASE. THANK YOU
Business Partnership
A business partnership is a legal relationship that exists between more than two people or companies where both parties invest their capital in the business and benefit from profits and losses. There are innumerable advantages of having a business partnership, beginning with the fact that there are more people involved, there is more capital available to develop projects, which in the same way means financial relief for the members since the investment does not fall on a single person. The ideas and capacities of the different members are used for the benefit of all, for example, one person is good at marketing, another at finance, another at human resources, etc., which creates a good team. The responsibilities of the business are shared between the partners just as everyone has the same level of participation in any task. Although it is true that this type of business has great advantages, it also has disadvantages such as that in a business partnership the conflicts can be quite notorious, for example disagreement over a product, the way one works with a certain task, etc. The responsibility for loans, debts, any decision that is made by another partner, is linked to all partners equally. If at any time any of the members of the business wants to sell their part, it could present a problem if it is done by a stranger. Definitively, the advantages outweigh the disadvantages when it comes to business partnership, it is also important to evaluate them carefully.
References:
Badgett, K. (2016). School-business partnerships: Understanding business perspectives. School Community Journal, 26(2), 83-105.
https://0624jgzw6-mp01-y-https-www-proquest-com.prx-keiser.lirn.net/scholarly-journals/school-business-partnerships-understanding/docview/1862999656/se-2
Martinuzzi, B. (2021). The Advantages and Disadvantages of a Partnership. American Express.
https://www.americanexpress.com/en-us/business/trends-and-insights/articles/what-are-the-advantages-and-disadvantages-of-a-partnership/
| Part 2 | ABC Company | Minimum Required Accounts: | ||||||||||||||||||||||||
| 5 Asset accounts | ||||||||||||||||||||||||||
| 2 Liabilities accounts | ||||||||||||||||||||||||||
| Account Number | Account Name | 2 Equity accounts | ||||||||||||||||||||||||
| ASSETS: | 1 Revenue account | |||||||||||||||||||||||||
| 101 | Cash | 5 Expense accounts | ||||||||||||||||||||||||
| 103 | Accounts receivable | |||||||||||||||||||||||||
| 105 | Office supplies | Tip: | ||||||||||||||||||||||||
| 107 | Prepaid Insurance | Remember the order of account | ||||||||||||||||||||||||
| 109 | Prepaid rent | numbering for each category | ||||||||||||||||||||||||
| LIABILITIES: | ||||||||||||||||||||||||||
| 201 | Account payable | |||||||||||||||||||||||||
| 203 | Salaries payable | |||||||||||||||||||||||||
| EQUITY: | ||||||||||||||||||||||||||
| 301 | ABC Company. Capital | |||||||||||||||||||||||||
| 303 | ABC Company. Withdrawals | |||||||||||||||||||||||||
| REVENUE: | ||||||||||||||||||||||||||
| 401 | Tuition revenue | |||||||||||||||||||||||||
| EXPENSES: | ||||||||||||||||||||||||||
| 501 | Salaries expenses | |||||||||||||||||||||||||
| 503 | Insurance expenses | |||||||||||||||||||||||||
| 505 | Rent expenses | |||||||||||||||||||||||||
| 507 | Utilities expenses | |||||||||||||||||||||||||
| 509 | Depreciation expenses – Equipment |
| June | 1st | ABC | ||||||||||||||||||||||||||||||||||
| 3rd | ABC Company pays $32,000 cash for equipment. | |||||||||||||||||||||||||||||||||||
| 5th | ABC Company purchases $15,000 of merchandise inventory on credit from a supplier. | |||||||||||||||||||||||||||||||||||
| 8th | ABC Company pays $ 800 in cash for employee salary. | |||||||||||||||||||||||||||||||||||
| 11th | ABC Company pays $15,000 cash to settle the account payable created on June 5th. | |||||||||||||||||||||||||||||||||||
| 15th | The owner withdraws $1,000 cash from ABC Company for personal use. | |||||||||||||||||||||||||||||||||||
| 19th | ABC Company sold merchandise inventory that had cost $8,000 for $11,000 cash (Note: This transaction will require two journal entries). | |||||||||||||||||||||||||||||||||||
| 24th | ABC Company pays $560 cash for this month’s utilities. | |||||||||||||||||||||||||||||||||||
| 27th | ABC Company pays $6,000 cash (insurance premium) for a 6-month insurance policy. Coverage begins July 1st. | |||||||||||||||||||||||||||||||||||
| 30th | ABC Company pays $2,000 cash for rent. |
| Part 3 | |||||||||||
| Required: Enter the journal entries from the transactions found on the Transaction tab | |||||||||||
| Journal Entries | |||||||||||
| Date | |||||||||||
| Account Number | Account Title | Debit | Credit | ||||||||
| 1-Jun | 101 | Cash | 50,000.00 | ||||||||
| Owner’s Capital | |||||||||||
| 3-Jun | |||||||||||
| 130 | Equipment | 3 | 2,000.00 | ||||||||
| Cash | 32,000.00 | ||||||||||
| 5-Jun | 110 | Merchandise Inventory | 15,000.00 | ||||||||
| Accounts Payable | |||||||||||
| 8-Jun | 602 | Salaries Expense | 800.00 | ||||||||
| 11-Jun | 201 | ||||||||||
| 15-Jun | |||||||||||
| 302 | Owner’s Withdrawals | 1,000.00 | |||||||||
| 19-Jun | 11,000.00 | ||||||||||
| Sales Revenue | |||||||||||
| 601 | COGS | 8,000.00 | |||||||||
| Merchandise Inventory | |||||||||||
| 24-Jun | 603 | Utilities Expense | 560.00 | ||||||||
| 27-Jun | |||||||||||
| 120 | Prepaid Insurance | 6,000.00 | |||||||||
| 30-Jun | |||||||||||
| 604 | Rent Expense | ||||||||||
| Required: Complete the Trial Balance as of June 30, 2020 | |
| Checking | 3,640.00 |
| 7,000.00 | |
| 301 | |
| 401 | |
| Salary Expense | |
| Utility Expense | |
| 61,000.00 |
Trial Balance
Trial stability is a declaration containing the balances of all widespread ledger money owed to an enterprise at a sure factor in time. The main objective of trial balance is to check the arithmetical accuracy of the entries posted in the ledger accounts. If the overall debits healthy the overall credits, then the trial stability is stated to be balanced. The trial balance ensures that the financial statements are accurate. Companies can easily check the accuracy of their trial balance by monitoring the debit and credit balances. Without the trial balance, companies would be estimating their income, and would be more likely to see errors in their financial statements. Trial balance helps in the preparation of financial statements. Trial stability no longer does agree, it indicates that there are sure errors. Trial balance acts as a tool for expenditure control. Trial balance helps in rectifying errors. Trial balance assists in comparative analysis. Trial balance helps in preparation of audit report.
|
Part 2 |
ABC Company |
|
Chart of Accounts |
|
|
Account Number |
Account Name |
|
ASSETS: |
|
|
101 |
Cash |
|
103 |
Accounts receivable |
|
105 |
Office supplies |
|
107 |
Prepaid Insurance |
|
109 |
Prepaid rent |
|
LIABILITIES: |
|
|
201 |
Account payable |
|
203 |
Salaries payable |
|
EQUITY: |
|
|
301 |
ABC Company. Capital |
|
303 |
ABC Company. Withdrawals |
|
REVENUE: |
|
|
401 |
Tuition revenue |
|
EXPENSES: |
|
|
501 |
Salaries expenses |
|
503 |
Insurance expenses |
|
505 |
Rent expenses |
|
507 |
Utilities expenses |
|
509 |
Depreciation expenses – Equipment |
