Financial Accounting Assignment: You Are an Entrepreneur

1927 Words Apr 14th, 2013 8 Pages
Introduction
In nowadays tide economic situation it is became more than hard for graduated students and even professionals to ensure they will find a suitable job and keep it for long. Many people are forced to stay in job they don’t like or that is not aligned with their education background just to survive and to be able to meet their basic needs. In light of this reality I decide to create my own business in partnership with a former colleague. The business name is Talent Source located in Baltimore.
1. Describe the type of business you have created
a. The product or service, and general staffing plan. Provide a rationale for your plan.
Talent source is a human resources consulting company located in Baltimore Maryland specialize
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268 Unearned service revenue Money received before the service is provided to the customer Owner’s equity
270 Isabelle Amount invest by Isabelle
272 Aniela Amount invest by Aniela
280 Other investor In case we have a third partner Revenue
390 Services revenue Money earn from the services provided to customers. This account goes ether with the cash or the account receivable Expenses To record expenses occurred during the accounting period
510 Salary and wage expenses Employee salaries and wage
512 Rent expenses Rental cost of the office
514 Supplies expenses Cost of the supplies used
520 Utilities expenses Electricity, water, heat etc…
530 Interest expenses Allocated interest expenses on the loan
534 Depreciation expenses Cost of long-term assets allocated to expense

1. Analyze whether or not you will be required to use GAAP or IFRS
Although SEC has express their aim to drop IFRS and adopt IFRS by 2014, as United States based Partnership Company, operating only in United States, we are required to use GAAP. Generally Accepted Accounting Principles (GAAP) is defined as the standard guidelines of accounting rules for financial accounting and preparation of financial statements for private companies and the companies trading publicly in United States. In addition we are a small emerging firm and we have no international ambition yet. So we are not operating across jurisdiction. The frequent changes in GAAP may impact our

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