This website uses cookies to ensure you have the best experience. Learn more

Accounting 221 Comprehensive Problem Essay

795 words - 4 pages

1. As per your request I have laid out the advantages and disadvantages of partnerships and corporations
2. A corporation has several advantages for a business. They have a separate legal existence so that the corporation, not the stockholders, may borrow money, buy, own, and sell property, and it may sue or be sued. The stockholders also have a limited liability in a corporation. The personal assets of the owners may only be claimed by creditors if fraud has occurred. A corporation has transferable ownership rights. This means that it is shares of capital stock that give ownership, and that stockholders can dispose of part or all of their interest in a corporation buy ...view middle of the document...

There are also no governmental regulations and restrictions like you would have in a corporation. It is also easy to make decisions for a partnership.
5. A partnership has disadvantages as well. It is a mutual agency so that the act of any partner is binding on all other partners, even when they act beyond the scope of the authority. A partnership also has a limited life that can be ended voluntarily at any time with the acceptance or withdrawal of a partner or the death or incapacity or a partner. All partners also share unlimited liability in a partnership. Creditors can claim to the personal resources of any partner if the assets of the partnership are insufficient.
6. Given that you are personal trainers that require individual certifications and you will practice individually with clients, I believe the unlimited liability that you must face in a partnership is a large risk. This is especially true because of the age of your expected client base. I would recommend a corporation will best suit your purposes.

(b) | Equity financing option: | | |
| Pros:No fixed interest paymentsCons:Control of corporation spread amongst stockholdersAdditional investors neededLow earnings per shareDebt FinancingPros:Control stays with incorporatorsNo need to find investorsHigh earnings per shareCons:Must pay regular interest payments | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |

6/12/2009 | Cash | 100000 | |
| Building | 200000 | |
| Common Stock | | 120000 |
| Paid-in capital in excess of par value | | 180000 |
| | | |
7/21/2009 | Cash | 900000 | |
| Common Stock | | 180000 |
| Paid-in capital in excess of par value | | 720000 |
| | | |
7/27/2010 | Retained Earnings | 45000 | |
| Common Stock Dividends distributable | | 30000 |
| Paid-in capital in...

Other Papers Like Accounting 221 Comprehensive Problem

Xacc280 Appendix D Essay

2537 words - 11 pages | |Financial Statements | | | | |Individual |Complete the Comprehensive Problem on pp. 189 and 190 of Financial Accounting. |Day 7 Sunday |100 | |Comprehensive Problem |Use the templates in Appendix G to complete the problem; complete all six tabs

Alternative Fair Value Essay

1205 words - 5 pages markets • The forces of supply and demand influence market behaviour and help keep markets efficient This applies to the market for accounting information and should determine what accounting data should be supplied and what accounting practices should be used to prepare it • Theory of efficient markets Cont • • • • • • The market for accounting data is not efficient The „free-rider‟ problem distorts the market Users cannot agree on what

Intermediate Accounting Final

1787 words - 8 pages financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports. That mission is accomplished through a comprehensive and independent process that encourages broad participation, objectively considers all stakeholder views, and is subject to oversight by the Financial Accounting Foundation’s Board of Trustees” (FASB, 2012). WHO ARE THE FASB? “Since 1973, the Financial

Factors Influencing Career Choice of Bsa Students in Adamson University

2671 words - 11 pages review searches for the factors influencing students’ choice of BS Accountancy as their college course and that factors will be beneficial to different group of people in lined with the problem of insufficient supply of accountants and to meet the urgent need of accounting students to become accountants in the future. On the newly issued pamphlet of American Institute of Certified Public Accountants, Accounting: The One Degree with 360 Degrees of

Trans-Share Case Study- Contract/Lease?

1206 words - 5 pages passes to the customer at the time of sale. The additional services and requirements are explicitly and distinctly outlined in the contract. Also, the contracts are substantially the same from customer to customer. This chosen method of accounting for the program should be seen as a high-quality investment. Therefore, these contracts meet specific performance obligations that are enforceable by the hand of the law. Specifically referring to ARC

Intermediate Accounting Sample Test

1726 words - 7 pages instructor. 3. Calculators may be used. They cannot be shared. You may not use the calculator on a cell phone. 4. If you have a question or problem, ask the instructor. 5. The minimum penalty for academic dishonesty on this exam will be a grade of 0 for this examination. Academic dishonesty includes giving aid to or receiving aid from another student during this exam. 6. No hats. No cell phones I certify by signing below

Accounting Information Systems

1653 words - 7 pages conclusive enough which may make an organization have a problem with decision-making and strategy (Liyanarachchi, 2008). Procedure and Process Analysis Procedure and process analysis is the manner in which the Accounting information system supports the decision making process of an organization, at all levels of an organization, through top management. It covers a broad category of the fundamental accounting, which include keeping, and making

Probability Worksheet

1572 words - 7 pages could use cost accounting systems to determine its product costs. Review the Week Six Assignment and begin working on the cost relationships and behaviors section for the Guillermo Furniture Store Paper. Resource: Introduction to Management Accounting Complete the following problem sets from the text: • • • Question 2-48, CVP and Financial Statements for a Mega-Brand Company, on p. 82 Question 2-61, CVP in a Modern Manufacturing Company, on p

Assignment 1: Review of Accounting Ethics

1711 words - 7 pages problem could be fixed by tough punishment of CEOs and CFOs alone or by only sharpening the regulatory framework and strengthening its enforcement. At stake is a much more complex problem that calls for a more comprehensive and sophisticated approach. (Brenkert, G., 2004) Despite all the attempts of the U.S. Government and international Financial and Auditing Organizations to prevent any accounting ethics breaches, problems will continue exist as long

Gasb Interpretation 5

693 words - 3 pages , these two requirements, the "due-date criterion" and the "60-day rule", are unique to property taxes. As a direct result of NCGA Interpretation 3, governments sometimes would not recognize property tax revenue in the current period, even though such resources would, indeed, be available to pay bills of the current period. Obviously, this caused a problem of inconsistency in application of modified accrual accounting. Thus, in order to define

Content and Description of Courses in Economics Department at the University of Jos

1194 words - 5 pages ; introduction to calculus; exponential and logarithmic functions; economic application of implicit functions, differential permutations and combinations, etc. ACC 111 – Introduction to Accounting (Accounting department) BUS 112 – Introduction to Business Management (Management Department) 200 level Compulsory Courses: ECO 211 & 221 – Microeconomics I & II Microeconomic theory; Problem of scarce resources and allocation of resources in production

Related Essays

Govt. Accounting Essay

933 words - 4 pages Fixed Assets and general Long-term Group of Accounts. Govt. Financial Reporting Entity 15 Accounting Characteristics common to Govt. Funds 16 Accounting Characteristics common to Proprietary Funds 17 Accounting Characteristics common to Fiduciary Funds 18 Accounting Problem Solving 19 Accounting Problem Solving 20 Government Operating Statement Accounts: Budgetary Accounting, Concepts & Rules for recognition of

Reflection Paper

1806 words - 8 pages materials were covered in accounting 221 class. But we also learned a few new account names such as prepaid insurance, income summary, and so on. And we also learned how to make an income statement given a trial balance and some other information, which is very useful. In chapter 4, we learned a lot about net income, comprehensive income, other comprehensive income and accumulated comprehensive income. Comprehensive income is the sum of net

Resear Papaer Essay

5366 words - 22 pages Journal ofAccounting Education, Vol. IO. pp. 215-233, Printed in the USA. All rights reserved. 1992 Copyright 074%5751/92$5.00+.0 0 1992 Pergamon Press Ltd. Case INTRODUCING ACCOUNTING - A COMPREHENSIVE CASE APPROACH SOUTHERN Marvin L. Carbon METHODIST UNIVERSITY 3. Warren Higgins UNIVERSITY OF CONNECTICUT SOUTHERN Virginia L. Lewis METHODIST UNIVERSITY Abstract: The paper presents a 4-part case study

Annual Report

3560 words - 15 pages , impairment) – accounting for intangible assets – a comprehensive coverage of consolidation issues – equity investments. Research School of Accounting and Business Information Systems 2 Lecture outcomes • Outcome 1: An understanding of the regulatory environment in which the companies are formed and operate in Australia. • Outcome 2: A solid foundation in accounting and reporting requirements of the Corporations Act and relevant Australian