Question

Pretend that you own a business- I chose a custom blacksmithing shop. The business will be...

Pretend that you own a business- I chose a custom blacksmithing shop. The business will be a sole proprietorship with no employees.

  1. list at least 3 asset accounts and 3 liabilities accounts you would expect your new business to have.
  2. Lastly, assume you were to invest $50,000 into your new business venture. How would your ownership interest be presented in the equity section of the business balance sheet, specifically?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

3 asset accounts:

  • Equipment and tools
  • Cash
  • Inventory: Raw material

3 Liability accounts:

  • Accounts payable
  • Accrued expenses
  • Unearned revenue

Presentation of Ownership interest in Balance sheet:

Owners equity:
   Owners Investment $50000
   Net income for the year (assumed) $5000
   Total Owners equity $55000
Add a comment
Know the answer?
Add Answer to:
Pretend that you own a business- I chose a custom blacksmithing shop. The business will be...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 32 EE illi E. ab a. & 11 CIE 5-3 FORM OF BUSINESS OWNERSHIP The needs...

    32 EE illi E. ab a. & 11 CIE 5-3 FORM OF BUSINESS OWNERSHIP The needs of the businessperson starting a new business are a major consideration when deciding the best form of business ownership. The kind of business being started is also important to consider when deciding to make your new business a sole proprietorship. partnership or corporation. Look at the list of new businesses below. Indicate the form of ownership you think would be best for each business....

  • Describe a type of business that you would like to own and discuss whether or not...

    Describe a type of business that you would like to own and discuss whether or not you would open your business as a sole proprietorship or a partnership.

  • Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very...

    Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very successful, owing much to his legacy as the greatest defensive third baseman in major league history and his nickname, “The Human Vacuum Cleaner.” Brooks operated his business as a sole proprietorship and used the cash method of accounting. Brooks was advised by his attorney that it is too risky to operate his business as a sole proprietorship and that he should incorporate to limit...

  • Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very...

    Several years ago, your client, Brooks Robertson, started an office cleaning service. His business was very successful owing much to his legacy as the greatest defensive third baseman in major league history and his nickname, "The Human Vacuum Cleaner." Brooks operated his business as a sole proprietorship and used the cash method of accounting. Brooks was advised by his attorney that it is too risky to operate his business as a sole proprietorship and that he should incorporate to limit...

  • Assume that you are planning on opening your own new business. Now, consider the structure of...

    Assume that you are planning on opening your own new business. Now, consider the structure of a corporation and the financial implications of incorporation. If you were to start this new business venture, what factors would you need to take into consideration to determine if you want to incorporate or not? Explain your rationale, detailing the specific effects or ramifications for your particular business.

  • Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000...

    Example: Funding and Ownership You founded your own firm two years ago. You initially contributed $100,000 of your money and, in return received 1,500,000 shares of stock. Since then, you have sold an additional 500,000 shares to angel investors. You are now considering raising even more capital from a venture capitalist. This venture capitalist would invest $6 million and would receive 3,000,000 newly issued shares. Assuming that this is the venture capitalist's first investment in your company, what percentage of...

  • In assessing your Business Structure Chart, if you had a sole proprietorship company and wanted to...

    In assessing your Business Structure Chart, if you had a sole proprietorship company and wanted to take it global, what structure would be best and explain why you chose that structure. Which business structure has the least amount of risk involved and explain your reasoning as to why it has the least amount of risk. need in essay form and at least 200 words

  • Select one of the following types of businesses: Custom home builder Auto repair shop Accounting firm...

    Select one of the following types of businesses: Custom home builder Auto repair shop Accounting firm Lawn service company Television show production Describe how your chosen business might use Job Order Costing to account for its product(s) or service(s): What direct and indirect product costs would the company incur? Are these costs variable or fixed? What overhead allocation base would you suggest for the company to use? What typical period costs would you expect your chosen type of business to...

  • agree or not? What are the advantages and disadvantages of changing the company organization from a...

    agree or not? What are the advantages and disadvantages of changing the company organization from a sole proprietorship to an LLC? A sole proprietorship is a company that is own by one person and is the simplest form of business to start (Ross, Westerfield & Jordan, 2020). Since there is only one owner for the organization, the sole proprietor retains all the profits from the business. On the other hand, a sole proprietor is also responsible for any debts, liabilities...

  • This Course is actually Introduction to Business Assignment Details You are about to start your own...

    This Course is actually Introduction to Business Assignment Details You are about to start your own business and have many decisions to make. Dream big and become an entrepreneur. Before you can start your business, you need to think about the business form you will use in order to address the issues of risk, taxes, and management practices. As we learned in Unit 1, there are various types of business such as sole proprietorship, partnership, and corporations. Then share the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT