You Are an Entrepreneur Essay

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You Are an Entrepreneur! Kristina Walters Dr. Chad Greenfield ACC557 – Financial Accounting 8/11/2013 1. EXECUTIVE SUMMARY 1.1 Product Sunshine Bakery is a new bakery specializing in gluten, wheat free products. Due to the rise in celiac disease there has been a significant increase in demand for these bakery products. For many years food allergies went undiagnosed and only recently doctors have started to diagnose food allergies such as gluten. Sunshine Bakery wants to help people affected with these problems through these specialized products. 1.2 Customers Sunshine Bakery will target customers that suffer from Celiac Disease. This disease more commonly known as a gluten allergy affects “An estimated 1 in 133…show more content…
We will need to send the bank quarterly statements using this format for the startup loan. It is good to use GAAP in the accounting process for any business so that all financials are being reported fairly and accurately. Sunshine Bakery will use the cost principle “The cost principle (or historical cost principle) dictates that company’s record assets at their cost.” (Weygandt, J., Kimmel, P., & Kieso, D. (2012) 3. FINANCIAL PROJECTIONS The chart of accounts below represent the appropriate accounts needed to correctly record journal entries in the general ledger. A bakery needs accounts to track produce and bakery items as well as machinery used to produce the items sold. As a startup company not all accounts below will be used but as the company grows it is good to have a well thought out plan for the future. 3.1 Sunshine Bakery Chart of Accounts Type Name | Acct Name | Acct Number | Asset | Cash | 1000 | Asset | Primary Bank Account | 1010 | Asset | Merchant Deposit Account | 1020 | Asset | Accounts Receivable | 1100 | Asset | Produce Inventory | 1210 | Asset | Bakery Inventory | 1220 | Asset | Prepaid Expenses & Advances | 1400 | Long Term Asset | Fixed assets | 1500 | Long Term Asset | Land & Building | 1510 | Long Term Asset | Furniture Fixtures & Equipment | 1530 | Long Term Asset | Leasehold Improvements | 1540
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