You are the accountant and encompass two clients you will be dealing with throughout this assignment. JumpinJehosaPhats is a haberdashery (Google it!), and is owned by J.J. Phats. JJ is expanding the company and is in requirement of advice. He has come to you to describe the future of the company.
Describe in detail the needs of incorporating the business, the merits and demerits and give JJ with recommendations.
2. Account Prep:
By using the data provided, make the owner's equity accounts and the shareholder's equity section of the balance sheet after the incorporation of JumpinJehosaPhats.
3. Expansion Considerations:
JJ is in the requirement of raising money to expand the company and has identified the methods which he is considering. By using the information given, compute any burden to the corporation and give recommendations to JJ concerning his options.
4. Cash Flow:
Your second client, Bailey's Chocolates, is asking you to generate a Cash flow from Operating Activities. By using the Indirect Method and the information given, compute the cash flow from Operating actions.
Be sure to cite your resources and comprise supporting computations and evidence to support your positions.