some money as capital into his business, in accounting records, it is treated as liability of the business to the owner. Here, one separate entity (owner) is assumed to be giving money to another distinct entity (business unit). Similarly, when the owner withdraws any money from the business for his personal expenses(drawings), it is treated as reduction of the owner’s capital and consequently a reduction in the liabilities of the business. The accounting records are made in the book of accounts from
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(A) Date Description Ref Debit Credit 1-Mar Cash 101 10244 L. Eddy, Capital 301 10244 1-Mar Equipment 157 5,620 Cash 101 2,810 Accounts Payable 201 2,810 Cleaning Supplies 128 1200 Accounts Payable 201 1200 Prepaid Insurance 130 1200 Cash 101 1200 Accounts Receivable
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other products, the Tootsie Roll Industry has maintained an innovative stand within the market. Expanding production of new products and manufacturing buildings the Tootsie Roll Industry are in need of a loan that will help increase the company’s liability by 10%. To accomplish this increase an adequate loan package will help in seeking for those needed funds. The loan package will include a liquidity ratio, solvency ratio, and profitability ratio explaining how and why the loan will be beneficial
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The balance sheet Equity= assets - liabilities current assets cash inventories Financial statements: Balance sheet current liabilities ! ! ! long-term liabilities equipment plant ! ! total shareholders equity stock ! long-term debt ! accounts payable ! acc receivable fixed assets retained earnings ! total assets x total liabilities + equity x Figure 2 example of a balance sheet Financial snapshot: 1 moment in time Assets against the claims Liability: obligation to deliver something of value in the future
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BEAUTY SALON Business Plan BEAUTY SALON Business Plan Contents 1.0 Executive Summary 2 1.1 Objectives 3 1.2 Keys to Success 4 2.0 Company Summary 4 2.1 Start-up Summary 5 2.2 Target Customers 6 2.3 Management 6 3.0 Services 7 4.0 Industry Analysis Summary 7 5.0 Market Analysis 9 6.0 Strategy and Implementation 9 6.1 Competitive Edge 10 6.2 Marketing 11 6.3 Promotional Strategy 12 7.0 Financials 13 7.1 Sales Forecast 13 7
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Acct # | Acct Title | W/P Ref | Last Years (Audited) | Current Years (Unaudited) | 10100 | Cash on Hand | | $1,987.28 | $2,275.23 | 10200 | Regular Checking Account | | $198,116.52 | $532,125.92 | 10300 | Payroll Checkiing Account | | | | 10400 | Savings Account | | $3,044,958.13 | $3,670,599.15 | 11000 | Accounts Receivable | | $16,410,902.71 | $49,780,259.98 | 11400 | Other Recievables | | | $1,000,000.00 | 11500 | Allowance for Doubt. Accts | | -$1,262,819.88 | -$1,254
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Usually, stockholders are interested in profitability ratios. However, lenders and suppliers favor liquidity ratios detailing how assets compare with current liabilities. Respectively, according to results for Liquidity and Asset Utilization, the current ratios, (current assets / current liabilities) shows for every $1.00 of current liabilities for Nike, Inc. has 3.1:1 (2007) and 2.8:1 (2006). On the other hand, Gap Inc. has 2.2:1 (2007) and 2.7:1 (2006). Specialty retailers’ average return is greater
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but their liabilities are lower and continued to decrease during the last year. Coca-Cola’s total liabilities in 2004 were $15,104.00, in 2005 their liabilities decreased by $4114.00, compared to PepsiCo’s, whose liabilities in 2004 were $14,464.00 and only continued to increase during the year by $3012.00 bringing their 2005 liabilities to $17,476.00.The rate at which Coca-Cola decreased from 2004 to 2005 was 27.2% compared to PepsiCo’s 20.8% decrease; the speed at which their liabilities decreased
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Accounting Exercises Charles Peterson Grantham University Exercise 2-9A Prepaid items on financial statement Therapy Inc. experienced the following events in 2013, its first year of operation: 1. Performed counseling services for $18,000 cash. 2. On February 1, 2013, paid $12,000 cash to rent office space for the coming year. 3. Adjusted the accounts to reflect e amount of rent used during the year. Required Based on this information alone a. Record the events under
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experience in both areas before starting, including areas such as management and accounting. If you buy an existing bakery, carefully evaluate the opportunity. Study the reasons for selling and assess potential profits, sales, expenses, assets and liabilities. Consult with an expert about the condition of the bakery equipment. Ask a lawyer to review any agreement. If you start a new bakery, do the same kind of careful assessments and consult with an accountant and a lawyer. Refer to the Service Business
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