Question

4. Frankie is a 10-year old entrepreneur. He is a big fan of sports trading cards and has a great idea for making money: 1) buy cards in bulk, 2) buy sleeves in bulk, 3) put cards in sleeves, and 4) sell single sleeved cards at a profit to other sports trading card fans. Frankie surveyed his friends and identified Melissa, Steven, Anthony, and Kyle as sports card fans willing to pay fairly high prices to get the cards they want, and are willing to pay cash. Besides those four, many other potential customers exist. Frankie's dad doesn't think Frankie's brainstorm is such a great idea because (a) Frankie has no money, and (b) Frankie may not have time to sort and assemble cards because he has too much homework. Frankie's Aunt Frances has plenty of money, no kids of her own, and is happy to lend some money to her namesake Frankie. Frankie's dad says she must charge simple interest at an annual interest rate of 10% to make it a real business transaction, otherwise no deal. Frankie's little sister Sally, who is 6 years old, is in the first grade, very smart, extremely industrious, and exceptionally trustworthy. She has lots of time because first graders don't have much homework. Sally is

Answer 1

Page No.: Date: Journal & ledges. ak 4180 Cash Do. To Aunt Fances ( Bking Amount Bosmwed) $180 Rischase ale D6-CuBx3) (ush $144 $144 TO (Being Cond Purchased) Dr. (7.50x2) 15 cash Rurchase alk $15 To slecves Puschased). (Beiny Enpenses alc Ds. To Cash (Beiny (ash Paid to sally) 48.64 $8.64 $400 alc To Sales Cush D6. $400 CBcing (ond Sold) $4.50 $180 12५.50 Intesest fap. Aunt frunies (ash Amount Re-peid) D8. D6. To (Being

Page No.. Date: 2 Income Statem ent. Psofit& loss, Alk. To En penses(sally) 8-64 By sales 400 To Interest 4.50 To Pischase (carscs) 144 To Poschuse (slecves) 15 To Dwner's 227.86 Equity 400 400 Balunıe-Sheet Amount l;abilitres. Asset Amuunt Owner's Equity 227.86 cash 227.86 227.86 227.86 Owner's Equity stutement Opening (upitkl C homwed hund) Add: Poofit earned Tess: Refund of bunawedhred 180 227.86 227.86

Page No.: Date: Value chain System for Founkie's Business Humun Acquition. Of Goods Finance Poocess Resource convesion poDiess Salos. Duality Relahonship Bন sally Puschuse casdsaslerus finonce froom Aunt faunc Put cands in slecves Sule the coods