Category: Accounting

You are advising the owner of Napolitos Pizzeria on startup decisions. Before opening, the owner must determine how much capital and cash are needed and how those amounts will be financed and recorded in the accounting records.In your initial post: Propose a reasonable amount of owners capital investment (contributed cash) and briefly justify your estimate (for example, based on equipment, leasehold improvements, initial inventory, and working capital needs). Identify at least three major asset categories needed at startup (such as kitchen equipment, furniture and fixtures, initial food inventory, prepaid rent or insurance) and explain how each will appear on the opening balance sheet. Describe at least two specific initial journal entries you expect to record (for example, owner investment, purchase of equipment for cash, purchase of inventory on credit, prepayment of rent). For each, indicate:o The accounts debited and credited.o Whether the account is an asset, liability, equity, revenue, or expense. Briefly explain how depreciation will apply to at least one longterm asset (for example, ovens or refrigerators), including:o A reasonable useful life.o Why depreciation expense does not involve a cash outflow when recorded.

• Do you think the same person who receives cash payments should also prepare the bank reconciliation? Give at least one reason to support your answer.
• Identify a company, business, or organization in your community (it can be one for which you work), and share some examples of current and long-term liabilities for that company. Reflect on the financial statement presentation requirements for the companys current and long-term liabilities. Based on what you have learned, what changes would you make, if any? Why, or why not?

Discussion 14 Discussion Prompt: Whats Fair and Whats Taxable? Fringe benefits like health insurance, gift cards, holiday parties, and even gym memberships can all have different tax treatments depending on how theyre structured. While some are fully tax-free, others (even small perks) may be subject to taxationespecially when they involve cash or cash equivalents. Prompt: Think about a benefit you’ve received in a job (or one youve heard about) that felt like a nice perk. Based on what youve learned, do you think it would be considered a taxable or nontaxable fringe benefit under IRS rules? Explain why, and identify what category (e.g., de minimis, working condition, qualified discount) it would fall into. Reply Requirements: Your original post should be at least 5 sentences long and apply at least one of the categories discussed in the reading or lecture. Respond to at least one classmate with a thoughtful comment (minimum 3 sentences) that builds on their example or offers another perspective. Make sure to use respectful, professional language. Bonus Thought: Do you think the IRS rules on fringe benefits are fair or confusing? Should small perks (like a $10 gift card) really be taxed?

Individual Written Assignment 1

CLOs 1,4,6

Leemo and Ride-A-Way are new ride-hailing service alternatives to taxi cabs like Uber and Lyft. While Ride-A-Way pays its drivers on a per-ride basis, Leemo prefers to pay its drivers fixed salaries. The cost structures and pricing of the two firms are given in the following table:

Cost Grouping Ride-A-Way Leemo

Selling price per ride $30 $30

Variable cost per ride $24 $15

Contribution margin $6 $15

per ride

Fixed costs per year $300,000 $1,500,000

Deliverables

1. Deliverables:
2. Research the ride-hailing industry and in no less than 500 words describe its evolution and where it stands today. You may use figures, tables, and graphs to support your argument but remember to cite your work.
3. Use the information provided to calculate the breakeven point in the number of rides for both companies.
4. Prepare two graphs plotting profit as a function of the number of rides for each of the two companies.
5. Explain which company has the more profitable cost structure.
6. Explain which companys cost structure is riskier and why.

Paper Specifics

Although this is a working paper it is also a research paper; therefore, it should be developed, organized and presented using APA formatting guidelines including the use of a title page, citations, headings, tables, figures, references and appendices (if applicable); be sure to cite at least three scholarly researched sources.

Any calculations and graphs may be done in Excel, and then transferred to a Word document. All calculations should be clearly explained as to your assumptions and how you arrived at your answers.

Note: Though the names of the teams in the case may be familiar, they are purely fictional; do not use external sources that discuss teams with similar names to support your analysis or any conclusions you draw.

Neither an abstract or running head is necessary for this assignment.

The submitted assignment MUST BE a Word Document.

Assignment Instructions

Directions

You will complete a portion of your Portfolio Project. For detailed directions, please refer to the Portfolio Project Directions and Rubrics document available in the Course Assessments folder.

Journal Entry Video

Journal Entry Video

Debits and Credits Video

You will complete parts of your Portfolio Project throughout this course. Please download and print the document linked below to keep track of all directions and deadlines.

Click the following link to download the Portfolio Project Directions and Rubrics:

ACCT120 – Portfolio Project Directions and Rubrics.docx

ACCT120 – Portfolio Project Template.xlsx