Develop an idea that will be the start of a business plan. Build on the idea for a service business - a Home Construction/Building Business.
The initial business plan should include the following:
• Name and product of your business.
• Type of business: Must be a service business (Home Construction/Building)
• Sole Proprietorship or Partnership?
? Discuss in your narrative why you chose the particular business and why you decided to set it up as a sole proprietorship or as a partnership.
• Chart of Accounts-consider the following:
? What assets your company will require
? Your investment
? Revenue
? At least 3 expenses
? Your capital and withdrawal accounts
? If a partnership, research how to set up the capital accounts
• Discuss the internal controls necessary for your business. Consider how the Sarbanes-Oxley Act applies.
• Discuss the challenges that you will face in ensuring the integrity of your company's accounting information.
• Develop journal entries for the first month. You must have the following, at a minimum:
? Initial investment
? Revenue/sales
? 3 expenses
? Owner's withdrawal(s)
• Post these to the ledger.
• Develop a trial balance.
The deliverable for this assignment is one Excel spreadsheet with worksheets for the journal, the ledger, and the trial balance, with the narrative part of the assignment pasted in from Word.
OBJECTIVE:
• Recognize and define the accounting equation, classify accounts as Assets, Liability, or Equity, and evaluate, record and post common business transactions.
• Assess the internal controls of a business and make recommendations for improvements.
• Review the accounting for typical current assets of an enterprise.
• Examine contemporary issues related to personal honesty and integrity in recording, protecting and reporting accounting information.
• Review the principles of accounting for current assets such as cash, accounts receivable and inventory.