Accounting

I have to do a written business report and power points bas dot the report!

Ed has decided that he would like to expand his business. In order to do this, he needs to procure a primary lender. He will be approaching several lenders and investors to see who will give him the best deal. He has asked you to prepare a presentation that will be given to these interested parties. In addition, you must prepare a business report that contains detailed information that was included in the presentation.

You may find it helpful to contact a lender and ask what types of information they typically look for in these types of situations. Include the information that you have been creating throughout the term that you feel would be included in a lending proposal. Feel free to conduct financial statement analysis to include in the presentation. Make sure you include any resources that you consulted to obtain your information. Following are some of the items that you may wish to include:

Background information on Big Ed’s Motorcycle Shop

Short bio on Ed Silver and the office manager/bookkeeper

How does Big Ed’s Motorcycle Shop intend to repay its debt?

Why is the loan needed?

Here is more information what she wants exactly:

My teacher wants us to start first with how much money are we asking for, why do we need it (buy a new building). How Ed’s company is going to repay the debt. Use the financial statement information for paying the debt. How Ed did started the business (you can write anything you wish) Short biography on Ed – what are his coalification to have this business, His intentions in 5 years for the business.
Bio on the office manager ( which would be me, we can say that I have an accounting How am I going to help EDs company to pay his dept. Business report at lest 3-4 APA format and have to site if we use an outside resource!

The power point slide has to be based on this information: 5-8 slides

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Big

Ed’s Motorcycle Shop Trial Balance For the Period Ended December 31, 20×8 Unadjusted Trial Balance Adjusted Trial Balance Income Summary

Balance Sheet

DR CR

DR CR DR CR DR CR
Cash 18

4,500

184,500 184,500

– 0 Accounts Receivable 145,200

145,200 145,200 – 0
Merchandise Inventory, Parts 100,000 97,000

97,000 – 0
Merchandise Inventory, Motorcycles 1

10,000

110,000 110,000 – 0
Office Supplies 6,720 5,220

5,220 – 0
Prepaid Insurance 4,080 2,880

2,880 – 0
Office Equipment 50,000

50,000 50,000 – 0
Accumulated Depreciation-Office Equipment 7,500 17,500

17,500
Store Equipment 52,000

52,000 52,000 – 0
Accumulated Depreciation-Store Equipment 7,860 18,260

– 0 18,260
Shop Equipment 183,600

183,600 183,600 – 0
Accumulated Depreciation-Shop Equipment 41,040 59,400

59,400
Accounts Payable 66,720

66,720 66,720
Salaries Payable 9,500

9,500
Interest Payable 5,376

– 0 5,376
Note Payable (due 2010) 67,200

67,200 67,200
Ed Silver, Capital 534,180

534,180 534,180
Ed Silver, Drawing 42,000

42,000 42,000
Sales 1,488,000

1,488,000 1,488,000
Cost of Merchandise Sold 930,000 933,000

933,000
Sales Salaries Expense 207,840 210,840

210,840
Service Salaries Expense 100,980 105,980

105,980
Office Salaries Expense 1,500

1,500
Advertising Expense 52,560

52,560 52,560
Depreciation Expense-Office Equipment

10,000 10,000
Depreciation Expense-Store Equipment 10,400

10,400
Depreciation Expense-Shop Equipment 18,360

18,360
Miscellaneous Selling Expense 1,920

1,920 1,920
Rent Expense 37,620

37,620 37,620
Insurance Expense

– 0

1,200

1,200
Interest Expense

5,376 5,376
Office Supplies Expense 1,560 3,060

3,060
Miscellaneous Administrative Expense

1,920 1,920 1,920
2,212,500

2,212,500

2,266,136

2,266,136

1,393,736

1,488,000

872,400 778,136 Net Income 94,264

94,264
1,488,000 1,488,000 872,400 872,400

20×7

Trial Balance

DR CR
Cash

Accounts Receivable

Merchandise Inventory, Parts

Merchandise Inventory, Motorcycles

Office Supplies

Prepaid Insurance

Office Equipment 50,000
Accumulated Depreciation-Office Equipment 7,500
Store Equipment 52,000
Accumulated Depreciation-Store Equipment 7,860
Shop Equipment

Accumulated Depreciation-Shop Equipment 41,040
Accounts Payable

Salaries Payable 7,500
Interest Payable 4,500
Note Payable (due 2010)

Ed Silver, Capital 534,180

724,780

				Big Ed’s Motorcycle Shop
For the Period Ended December 31, 20×7
81,900
179,200
115,000
71,980
4,220
1,880
168,600
65,000
57,200
	724,780

Solution

$10,000

$10,400

$18,360

Cost of Merchandise Sold

$3,000

$1,500

Sales Salaries Expense $3,000

Service Salaries Expense

Office Salaries Expense $1,500
Insurance Expense

$1,200

$5,376

1. Sales

$1,488,000

2. Income Summary

Cost of Merchandise Sold

Sales Salaries Expense

Service Salaries Expense

Office Salaries Expense $1,500
Advertising Expense

Depreciation Expense-Office Equipment $10,000
Depreciation Expense-Store Equipment $10,400
Depreciation Expense-Shop Equipment $18,360
Miscellaneous Selling Expense

Rent Expense

Insurance Expense $1,200
Interest Expense $5,376
Office Supplies Expense

Miscellaneous Administrative Expense $1,920
3. Income Summary

Ed Silver, Capital $94,264
4. Ed Silver, Capital

Ed Silver, Drawing $42,000

Journal Entries
	1.	Depreciation Expenese – Office Equipment					$10,000
Accumulated Dep. – Office Equipment
	2.	Depreciation Expenese – Stores Equipment				$10,400
Accumulated Dep. – Stores Equipment
	3.	Depreciation Expenese – Shop Equipment				$18,360
Accumulated Dep. – Shop Equipment
	4.			$3,000
Merchandise Inventory – Parts
5.	Office Supplies expense					$1,500
Office Supplies
6.
$5,000
Salary Payable	$9,500
7.
			$1,200
Prepaid Insurance
8.	Interest Expense				$5,376
Interest Payable
Closing Entries
		$1,488,000
Income Summary
$1,393,736
	$933,000
	$210,840
	$105,980
	$52,560
			$1,920
	$37,620
	$3,060
				$94,264
		$42,000

Income Statement

Big Ed’s Motorcycle Shop

Income Statement
Sales $1,488,000

Cost of Merchandise Sold $933,000

Sales Salaries Expense $210,840
Service Salaries Expense $105,980

Office Salaries Expense $1,500

Advertising Expense $52,560
Depreciation Expense-Office Equipment $10,000
Depreciation Expense-Store Equipment $10,400
Depreciation Expense-Shop Equipment $18,360
Miscellaneous Selling Expense $1,920
Rent Expense $37,620

Insurance Expense $1,200

Interest Expense $5,376
Office Supplies Expense $3,060
Miscellaneous Administrative Expense $1,920
Net Income $94,264

For the year Ended Decemeber 31, 20×8
Less:
Gross Margin	$555,000
Less: Expenses
Total Expense	$460,736

Capital Account

Big Ed’s Motorcycle Shop

Account

$94,264

$42,000

	Owner’s Capital
	For the year ended December 31, 20×8
Balance Beginning	$534,180
Add: Net Income
Sub total	$628,444
Less; drawings
Belance Ending	$586,444

Balance Sheet

Big Ed’s Motorcycle Shop

Balance Sheet
Cash

Accounts Receivable

Merchandise Inventory, Parts

Merchandise Inventory, Motorcycles

Office Supplies

Prepaid Insurance

Office Equipment

Accumulated Depreciation-Office Equipment

Store Equipment

Accumulated Depreciation-Store Equipment

Shop Equipment

Accumulated Depreciation-Shop Equipment

Accounts Payable

Salaries Payable

Interest Payable

Note Payable (due 2010)

Owner’s Capital
Ed Silver, Capital

735240 0

As on December 31, 20×8
Current Assets
184500
145200
97000
110000
5220
2880
Total Current Assets	544800
50000
17500	32500
52000
18260	33740
183600
59400	124200
Total Assets		735240
Liabilities
Current Liabilties
66720
9500
5376
Total Current Liabilties	81596
Other Liabilites
67200
Total Liabilities	148796
586444
Total Liabilities and Owner’s Capital

Cash Flow Statement

Big Ed’s Motorcycle Shop

For the year ended December 31, 20×8
Net Income $94,264

-$1,000

-$15,000

Cash flow from Investing Activities

$10,000

Statement of Cash Flows
Adjustments:
Depreciation	$38,760
Decrease in Accoutns Receivable	$34,000
Decrease in Inventory Parts	$18,000
Increase in Inventory Motor Cycles	-$38,020
Increase in Office supplies		-$1,000
Increase in Prepaid expense
Increase in Accoutns payable	$1,720
Increase in Salary Payable	$2,000
Increase in Interest Payable	$876
$55,336
Cash Flow from Operating Activities	$149,600
	Cash flow from Investing Activities
Purchase of Shop Equipment		-$15,000
Issue of Notes Payable
Drawings	-$42,000	-$32,000
Net Increase in cash	$102,600
Cash Balance – Beginning	$81,900
Cash Balance – Ending	$184,500