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The I want to establish is a Computer Service Center.

The business will be named Reliable computer service center.

For me to carry on this business I need the following items:

item cost

land 130000

building 160000

computer and cash register 25000

equipment 27000

current asset:

cash 55000

inventory 15000

building is depreciated by $11,000 annually and equipment is depreciated by $3000 annually

Source of financing the business.

Short term loan

account payable 28000

income taxes payable 6000

Long term loan

bonds payable 164000

Equity

common stock 200000

Reliable Computer Service Balance sheet for the December 31/2012

Assets $ Liabilities and Equity

current assets:

cash 55,000 Current liabilities:

inventory 15,000 account payable 28,000

Property,plant and Equipment: income tax payable 6,000

land 130,000 Long-term liabilities:

buildings 160,000 bonds payable 164,000

accumulated depreciation (11,000) Equity:

equipment 27,000 common stock 200,000

accumulated depreciation (3000)

computer and cash register 25,000

Total asset 398,000 Total liabilities and equity 398,000

Operating activity of Reliable computer service center

The business will be in operation seven days a week and will start from 8:00am to 7:00pm.

Each service provided will cost $10,000 and the the business is will be providing 50 services pay day

the average cost per service provided will be $3000.

other operating expense will include

salaries and wages $40000

utilities 55000

electricity 15000

interest 42000

depreciation 14000

20% tax will be charged

Reliable Computer Service Income statement for the year ended December 31,2012

Cost $ $ Revenue $

cost of services 150,000 income 500,000

gross profit 350,000

Operating expense:

salaries and wages 40,000

utilities 55,000

electricity 15,000

interest 42,000

depreciation 14,000...