Project 1. You are promoting a rock concert in your area. Your purpose is to earn a profit, so you need to establish the formal structure of a business entity. 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 of the items your business must arrange to promote and stage the rock 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. Refer to Appendix D if needed.

4. Prepare the Income Statement, statement of changes in equity, and Balance Sheet immediately after the rock 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 rock 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.

Project 2. Contact a local business and arrange with the owner to learn what accounts the business uses.

Requirements 1. Obtain a copy of the business’s chart of accounts.

2. Prepare the company’s financial statements for the most recent month, quarter, or year. You may use either made-up account balances or balances supplied by the owner.

If the business has a large number of accounts within a category, combine related accounts and report a single amount on the financial statements. For example, the company may have several cash accounts. Combine all cash amounts and report a single Cash amount on the Balance Sheet.

You will probably encounter numerous accounts that you have not yet learned. Deal with these as best you can. The charts of accounts given in Appendix D can be helpful.