Submitted by: Submitted by paperkamara
Views: 169
Words: 636
Pages: 3
Category: English Composition
Date Submitted: 05/11/2013 09:55 AM
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...