Project 5 Assignment

Project 5: Final Project

A car being shined.

AUTOMOBILE DETAILER

Automobiles will acquire a better price when they are clean and shiny. You have chosen to start a business as an automotive detailer to help people get the best price they can for their automobile. Follow the directions below. Click on the accounting form links, as you need them. Notice that the chart of accounts is included in the front of the general ledger. Check with your teacher where you need to save this for assessment. Use the current date on all of your forms.

Create a business outline or plan. Follow the steps described in the paragraph.

When you approach the bank for financing to start your business, it is good practice to prepare an outline or plan of your business idea. This outline should describe how you are going to set up this business, who your customers will be, what kinds of expenses you are expecting to incur, and why you think it will be a profitable venture. You should also indicate how the loan you are requesting will support the start up of the business. This document should be no longer than a page and clearly outline the positive aspects of your loan-worthy idea. For supporting documents, attach to this plan the balance sheet and the chart of accounts that you create below.

A picture of a bank

The Business Outline or Plan Rubric is available to guide you with this assignment. You may also find this rubric in the Toolkit.

Create a beginning balance sheet for your business. You will need to open the Balance Sheet Template.
1. You have decided to start an automotive detailing business out of your home. You are the sole proprietor of this business, and must use your first and last name in the capital account. Give your business a name and create the beginning balance sheet.
2. You have $10 000 available to start your business. This is divided into $4500 cash that you saved and $5500 that you borrowed from the Friendly Loans Bank. You managed to purchase a car polishing kit on credit from Canadian Tire, so you owe them $400. These are your only two liabilities.
3. Spend the rest of your money on assets that you feel you will need to start this business, remembering that you will need to keep some cash in the bank. You must have at least four asset accounts. Search the Internet or local flyers to find assets that are relevant to this business so you can put a realistic dollar value on each. Remember that assets may be grouped together; for example, office equipment can include a computer, printer, fax machine, and any other equipment the business may need.
Create a chart of accounts. You will need to open the Chart of Accounts with General Ledger Template. Note that this form includes a general ledger.
1. Give each account an appropriate name and number to prepare a chart of accounts.
2. You will need a drawing account and an income summary account.
3. You will need a revenue account.
4. You will need at least three expense accounts.
Open the accounts.
Prepare the opening entry on page 1 of the General Journal Template.
Post the opening entry.