Videos
Which Type of Business Entity?
Since graduating from college five years ago, you have worked for a national chain of men’s clothing stores. You have held several positions within the company and are currently manager of a local branch store.
Over the past three years, you have observed a pattern in the purchases of men’s suits. You establish that the majority of men’s suit purchases are black, brown, blue, gray, and olive. You also noticed that French cuff shirts are now fashionable, but few stores carry a wide color selection. Since you have always wanted to be in business for yourself, you decide to open a shop that will sell suits that are black, brown, blue, gray, and olive and to carry a wide array of colors of French cuff shirts. Your store will also sell fashionable ties and cuff links. You have decided that your store will brand itself for focusing on men’s fashion; therefore, the name for your store will be “The Style Shop.” You have discussed your plan with a number of people in the industry and they believe your idea is a viable one and have encouraged you to pursue your dream of becoming an entrepreneur.
A new upscale outdoor shopping mall is opening nearby, and you have decided that now is the time to take the plunge and go into business for yourself. After developing a comprehensive business plan that includes marketing strategies and financial projections, you decide to open The Style Shop in the new mall.
One of the things you must decide in the process of transforming your idea into reality is the form of ownership for your new business. Should it be organized as a sole proprietorship, a
What advantages or disadvantages are there to each choice? What do you think of the proposed name for the business, The Style Shop? Use the chart below to organize your thoughts.
Want to see the full answer?
Check out a sample textbook solution
Chapter 1 Solutions
COLLEGE ACCOUNTING ETEXT+CONNECT ACCESS
- What is the total cost of job number w2398 on these financial accounting question?arrow_forwardHow much is the direct materials price variance for this accounting question?arrow_forwardMiguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2023, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 222. Job stats are as follows: Direct materials cost Direct labour cost $173,250 $240,000 500 hours Direct labour hours Special Design Cost Distribution quote from haulage company Units of product produced $8,750 $21,700 400 cartons a) Compute Miguel's Manufacturing Company predetermined manufacturing overhead rate for 2023. b) How much manufacturing overhead was allocated to Job #222? c) Calculate the total cost & quotation price of Job #222, given that a margin of 25% is applied. d) How much was the…arrow_forward
- Faced with rising pressure for a $17 per hour minimum wage rate, the farming industry is currently exploring the possible use of robotics to replace some farm workers. The Produce Bot is one such robot; its job is to thin out a field of lettuce, removing the least promising buds of lettuce. By removing these weaker plants, the stronger lettuce plants have more room to grow. Assume the following facts: i (Click the icon to view the information.) While the Produce Bot itself may be in workable condition for up to five years, assume that the farm would view its implementation as a one-year experiment. Requirement Perform a cost-benefit analysis for the first year of implementation to determine whether the Produce Bot would be a financially viable investment if the minimum wage is raised to $17 per hour. (Round your answers to the „bola dallon\ Cost-Benefit Analysis Expected Benefits (Cost Savings): Total expected benefits Expected Costs: Total expected costs Net expected benefit (cost)…arrow_forwardPlease help me with the last entry. The dropdown options are the revenue accounts i can usearrow_forwardPlease help me with this problem!arrow_forward
- Please help me with this problemarrow_forwardPROBLEM 2 On July 1, 2022, LTU Contracting, Inc. purchased a new Peiner SK575 Tower Crane for a total cost of $875,000. The crane has an estimated useful life of five (5) years. For financial reporting (book) purposes, the company utilizes straight line depreciation. For tax purposes, the equipment is depreciated over five years utilizing the 200% declining balance method. A. Prepare a table that computes the book and tax depreciation for each year of the useful life and determine the difference in book value between each method at the end of each year. B. On July 1st, 2025, the company is considering selling the crane for $500,000. Compute what the gain or loss would have been at that time for both book and tax purposes.arrow_forwardPLEASE HELP AND FILL ALL CELLSarrow_forward
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning