You are promoting a concert in your area. Your purpose is to earn a profit. Assume you organize as a corporation.

Requirements

1. Make a detailed list of 10 factors you must consider as you establish the business.

2. Describe 10 things your business must do to promote and stage the concert.

3. Identify the transactions that your business can undertake to organize, promote, and stage the concert. Journalize the transactions, and post to the relevant T-accounts. Set up the accounts you need for your business ledger.

4. Prepare the income statement, statement of retained earnings, and balance sheet immediately after the concert—that is, before you have had time to pay all the business bills and to collect all receivables.

5. Assume that you will continue to promote concerts if the venture is successful. If it is unsuccessful, you will terminate the business within three months after the concert. Discuss how to evaluate the success of your venture and how to decide whether to continue in business.