You are advising the owner of Napolitos Pizzeria on startup decisions. Before opening, the owner must determine how much capital and cash are needed and how those amounts will be financed and recorded in the accounting records.In your initial post: Propose a reasonable amount of owners capital investment (contributed cash) and briefly justify your estimate (for example, based on equipment, leasehold improvements, initial inventory, and working capital needs). Identify at least three major asset categories needed at startup (such as kitchen equipment, furniture and fixtures, initial food inventory, prepaid rent or insurance) and explain how each will appear on the opening balance sheet. Describe at least two specific initial journal entries you expect to record (for example, owner investment, purchase of equipment for cash, purchase of inventory on credit, prepayment of rent). For each, indicate:o The accounts debited and credited.o Whether the account is an asset, liability, equity, revenue, or expense. Briefly explain how depreciation will apply to at least one longterm asset (for example, ovens or refrigerators), including:o A reasonable useful life.o Why depreciation expense does not involve a cash outflow when recorded.
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