Essays24.com - Term Papers and Free Essays
Search

Maria Hernandez & Associates

Essay by   •  January 24, 2011  •  931 Words (4 Pages)  •  4,610 Views

Essay Preview: Maria Hernandez & Associates

Report this essay
Page 1 of 4

Maria Hernandez & Associates

Prepared by

Ramon D. Gonzalez

For

Professor C.E. Reese

In partial fulfillment of the requirement for

ACC 770-Managerial Accounting

School of Business/ Graduate Studies

St. Thomas University

Miami Gardens, Fla.

Term A3/ Summer 2008

May 22, 2008

Table of Contents

Issues----------------------------------------------------------------------------------3

Facts-----------------------------------------------------------------------------------3

Analysis-------------------------------------------------------------------------------4

Conclusions---------------------------------------------------------------------------5

I. Issues

1a. How Would you have reported on operations of Maria Hernandez & Associates through August 31, 2001?

1b. Had the company made a profit as Maria Hernandez believed?

1c. If so, how would you explain why the cash in the bank has declined?

II. Facts

Maria is a graduate of the Massachusetts College of Art who worked to two companies specializing in the webpage designs. She worked as an employee for three years and was laid off twice. After experiencing the results of working for someone else, she decided it was time to make it on her own. With her abilities and confidence she decided to create a webpage design consultancy offering webpage designs to potential customers.

At start up on June 1, 2001 she opened a new account with her saving of $30,000 and her father lent her another $20,000. With this capital she rented an office and supplied with stationary and purchased computer equipment. Maria had $12,000 cash in the bank left over and some assets. Several days after getting off the ground she was working with two customers designing their webpage.

Around the middle of August she had four other designers working for her and business was continuing to pick up. With new employees working for her and business coming in she knew things were going well, but she could not account what was actually taking place. She knew she had to pay her father back at a 6% interest and had other questions about the depreciation of the equipment she purchased. It was time for real accounting.

III Analysis

1a. Maria Hernandez and Associates have to create a complete a balance sheet for August 31, 2001. Utilizing the accrual accounting method will illustrate the state of the company as of August 31, 2001.

Beginning Ending

Balance Balance

Cash 12,000.00 40,000.00 (900.00) (6,000.00) (5,500.00) (33,000.00) 6,600.00

Accounts Receivable 7,000.00 7,000.00

Office supplies 5,000.00 900.00 (1,700.00) 4,200.00

Equipment & Software 27,000.00 11,000.00 38,000.00

Accum Depre (2,111.00) (2,111.00)

Prepaid rent 6,000.00 (3,000.00) 6,000.00 (3,000.00) 6,000.00

Total

...

...

Download as:   txt (4.9 Kb)   pdf (83.4 Kb)   docx (10.9 Kb)  
Continue for 3 more pages »
Only available on Essays24.com
Citation Generator

(2011, 01). Maria Hernandez & Associates. Essays24.com. Retrieved 01, 2011, from https://www.essays24.com/essay/Maria-Hernandez-Associates/30432.html

"Maria Hernandez & Associates" Essays24.com. 01 2011. 2011. 01 2011 <https://www.essays24.com/essay/Maria-Hernandez-Associates/30432.html>.

"Maria Hernandez & Associates." Essays24.com. Essays24.com, 01 2011. Web. 01 2011. <https://www.essays24.com/essay/Maria-Hernandez-Associates/30432.html>.

"Maria Hernandez & Associates." Essays24.com. 01, 2011. Accessed 01, 2011. https://www.essays24.com/essay/Maria-Hernandez-Associates/30432.html.