EntrepreneurshipDecisionsAmisha AcharyaBus 305 FundamentalAccounting PrinciplesPresidential BusinessSchoolWestcliff UniversityMr. Birendra MahattoProfessor: Dr. YvanNezerweJanuary 28, 2018 AbstractThis analysis will highlights on to an EntrepreneurshipDecisions. An individual who starts a business prepared to risk loss inorder to make money is Entrepreneur.
They are innovator, procedures, and sourceof new ideas. They have skills to anticipate current and future needs forming newideas (Entrepreneur, n.d.).
Entrepreneur playsa key role in an economy.An Entrepreneur comes with a host of challenges- trying toestablish a brand, adjust to match and keep the business profitable. An Entrepreneurfaces obstacles when they first build their company (Alton, 2016).
Financial issues,building a team, making important decisions, answering bug questions,rule-making, decision making are the challenges and are difficult to overcome.The benefits that entrepreneur gain are: – personalfinancial gain, self-employment, developing more industries, self-motivation.According to the question, this chapter is related to thetopic “Happy Family” who supply organic food dealing with numerous suppliersand customers establishing their own company.
1.Identify the special journals that Happy Family would belikely to use in its operation. Also, identify any subsidiary ledgers that itwould likely use.Ans: Happy Family has used both special journals andsubsidiary ledgers in its operation. The company is likely to use the followingspecial journal.i)Sales journal: A sales journal is the accounting journalused to record all credit sales of a company. It records the revenue generatedby the sales of goods or services.
ii) Purchase journal: A purchase journal also known aspurchase day book is a special journal used to record all the purchase made oncredit during a period.iii) Cash receipts journal: A cash receipt journal is a specialaccounting journal used for all receipts of cash or record cash collection. Itrecords the cash inflow of the company.
iv)Cash disbursements journal: A cash disbursement journalalso known as cash payment journal is a journal by accountants to record allthe payment and expenses made by a company. It records the cash outflows of thecompany.v) General journal: The general journal is the masterjournal to record all company transactions but not in special journals. It isthe book of original entry that requires both accounts debited and credited belisted along with their balance amounts.
The company also is likely to use the following subsidiaryledgers.i)Account receivable subsidiary ledger: An accountreceivable subsidiary ledger is an accounting ledger to tracks the amounts owedby individual customers. It is a list of clients who are the debt to thecompany.ii) Account payable subsidiary ledger: An account payablesubsidiary ledger is an accounting ledger to track the amounts owed toindividual vendors. It is also known as creditor’s ledger and the lists ofsuppliers.iii) Inventory ledger: Inventory ledger is the ledger thatshows all different inventory items like inventory ready to sell, in process ofbeing completed and materials to be used in production.
2. Happy Family hopes to double yearly sales within fiveyears hence from its current $100 million annual amount. Assume that its salesgrowth projections are as follows: Year One year Two years Three years Fourth years Fifth years Hence Hence Hence Hence Hence Projected growth in sales (from the preceding year)….. 0% 20% 15% 25% 20% Ans: The current annual amount of Happy Family is $100million. The double yearly sales in five years are known with the help ofsolution:Solution: Year 1: $100000Year 2: $100000*20% = $120000 Year 3: $120000*15% = $138000Year 4: $138000*25% = $172500Year 5: $172500*20% = $207000 Year One Year Two Years Three Years Fourth Years Fifth Years Hence Hence Hence Hence Hence Sales….
$100.0 mil $120.0mil $138.0 mil $172.5 mil $207.0 mil The above table explains if sales follow the growthprojected, the company will have more than doubled the current $100 million inannual sales to $207 million annually. References Alton, L. (2016, January 07).
The 8 biggest challenges for new entrepreneurs. Retrieved from Entrepreneur: https://www.entrepreneur.
com/article/254721 Entrepreneur. (n.d.). Retrieved January 28, 2018, from Investopedia: https://www.investopedia.com/terms/e/entrepreneur.asp