Project: ACC100 Principles of Accounting

During our introductions on the first day of class, many of you talked about your dreams and aspirations to open your own business. The class project incorporates research about the steps to register your company. Please follow the steps below to complete your project: Project steps - complete in the following order:

1) Think of a business that you dreamed of starting (for example, a restaurant, a home cleaning service business, childcare, merchandising etc.).

2) Based on the business you have identify in #1 above, consider how you would like to organize the business. For example, you could organize the business as a sole proprietor, a partnership, a corporation and or a LLC. The form of organization of the business will dictate how the federal, and or local government will view your business for federal and local income taxes. So be very careful with the from business organization you choose, as it will impact your tax liability or the business tax liability.

3) after completing steps one and two, research on the Internet how you would go about creating a business plan which will include registering the business (if the business will be organized as a corporation or a limited liability company).

4) at this point in time you should begin to document your research and your business plan (provide evidence of the research you done on the internet) The business plan should include, registering the business, if applicable, determining how you will finance the venture (prepare a projection of cash you will need and the source), obtaining a location and starting up the business.

5) Consider that the business is now operating, prepare a set of mock transactions (for example, contributing capital to start the business, purchasing equipment and materials, paying for expenses, recording sales) for one month of operations.

6) Record the transactions identify at #5 in general journal, open a general ledger (these will be T accounts) and post the transactions from the journal to the general ledger.

7) Prepare a trial balance. 8) Prepare a set of financial statements (income statement, statement of owners equity and a balance sheet).