On May 1st, you started a new business in the fashion industry with only $100,000of your own cash. You are very excited about your new venture, but it has also been keeping you very busy. It is now June and you are running behind on your bookkeeping, which is concerning. In fact, you have no idea how your new company is performing financially. You have never even taken an accounting course before!

You decided to hire an accountant to help you with your bookkeeping. The accountant has requested some information to help them prepare your financial information. Due to COVID-19 social distancing rules you are not allowed to meet in the office. Instead you will have to communicate via email. The following is the email request from your new accountant.

Dear Client,

Congratulations on your new venture! Thank you for choosing Kontur and Associates as your accounting firm. Please provide us the following information so that we may assist you in compiling the following financial statements for last month:

• Income Statement
• Balance Sheet
• Statement of Changes in Equity

In order to assist you please provide us with the following information:

• The name and brief description of your operations and structure of your business.
• Description of all the transactions for the month of May.

We look forward to hearing back from you.

Sincerely,

Anita Bean Kontur, CPA

INSTRUCTIONS

Phase 1: Business Owner (5%)

Your Role: New Business owner (The Client)

Required: Respond to Ms. Konturs email providing her with the following information:

1. A description of your business (approx. 150 words), including the name, type of business and structure / form of your business.
2. A description of all the accounting transactions for the month of May including the transaction number, transaction date, dollar amount and method of receipt/payment (where required, eg, cash or credit etc.). Using the table below to list the business activity including a variety of revenue, expense and other transaction types to encompass:
   1. 6 operating activities (O)
   2. 3 investing activities (I)
   3. 3 financing activities (F)

Trans No.Trans DateDescriptionActivity Type (O, I, F) 1. May 1 I invested $100,000 cash into my new business. F

Please ensure that your email is professional and written in full sentences. Once approved by the instructor, you may take on the role of the bookkeeper. "The bookkeeper" will proceed to complete Phase2