Accounting Essay Research Paper Christys Lemonade Stand

Accounting Essay, Research Paper

Christy? s Lemonade Stand

START-UP

On the first Saturday after school is out, Christy and her household travel to the park for a field day. After tiffin, Christy, who is eight old ages old, takes a walk around the park with her Dad. At one terminal of the park, she sees immature miss selling lemonade in forepart of a house across the street. She recognizes the miss as one of her schoolmates, and Christy and Dad cross the street for a confab. Her schoolmate, Abigail is making a alert concern selling lemonade at 25cents per cup, and shows Christy a shoebox full of dollar measures and quarters.

On the manner place, Christy asks if she can put up a lemonade base following Saturday. Her Uncle Eldon, who likes to construct things with wood, offers to construct her a lemonade base if she can pay him for the stuffs ( about $ 10, he thinks ) , plus $ 1 for his labour. Her small brother, Andy, offers to assist out, and Christy agrees to pay him $ 2 to be her helper.

The following Friday, Christy? s Mom estimates the sum of lemonade mix and other supplies that she will necessitate if she sells 80 cups of lemonade. Christy gets $ 15 from her hoggish bank, and so goes to the food market shop with Mom. They buy the points on Mom? s list for $ 10.

When they arrive place, they find that Uncle Eldon has delivered the lemonade base. It has a counter, a mark that says, ? Lemonade? 25 cents? and a bench for Christy to sit on. Christy? s pa says that she can utilize this base every Saturday for the remainder of the summer, or a sum of 11 Sabbatums, Eldon has already left, but has told Dad that he will be at that place at 9:00 ante meridiem tomorrow to make full his jug with lemonade before he goes fishing, and that he will roll up the $ 11 for the lemonade base sometime after he gets place Sunday afternoon.

While they are puting up the base in the front pace, Cousin Rex beads by. After Christy tells Rex what she is be aftering to make, he gives her a dollar and says he will convey his household around the following twenty-four hours for 4 cups of lemonade.

Christy counts her money. She has already earned $ 6 from her concern and she hasn? t even started working yet!

Saturday

Saturday turns out to be a typical, hot summer twenty-four hours. Christy & # 8217 ; s house is strategically located across from a schoolyar

vitamin D that is busy all twenty-four hours long with association football, baseball, and hoops games. She serves her first four cups to Uncle Eldon at 9:00 a.m. for $ 1. During the balance of the twenty-four hours, concern is alert, and Christy serves 100 more cups of lemonade, including four to Cousin Rex and his household. At 2:00 p.m. Dad takes $ 6 from her shoebox to the shop to purchase more lemonade ingredients.

At the terminal of the twenty-four hours, Christy counts the money in her shoebox. It comes to $ 24. Andy asks for his $ 2, but she promises to pay him the following twenty-four hours. She has $ 3 worth of lemonade ingredients left over to utilize the undermentioned hebdomad. In add-on, a neighbour, Mr. Lee, owes her $ 1 for four cups she served to his household after he promised to pay her the following twenty-four hours.

Epilogue

Early on on Sunday, Mr. Lee stops by to pay Christy his $ 1. Christy so pays Andy his $ 2 in rewards. After tiffin, Christy takes $ 4 from her shoebox to the shop to purchase a plaything. Uncle Eldon Michigans by subsequently that afternoon, and Christy pays him the $ 11 for the lemonade base.

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REQUIRED

1.From a hard currency position how much did Christy? gain? ? ( Cash footing income ) There are nine hard currency minutess that should be included in your analysis. Make you believe that this construct of? net incomes? ( the addition in the sum of hard currency that her concern has ) is a good manner to mensurate how much she earned from her lemonade concern? Why or why non? What does it intend to? gain? income?

2.Can you think of a better manner to mensurate the income from Christy? s Lemonade Stand? If so, what was the income of Christy? s Lemonade Stand utilizing this better method? Hint: Analyze each of Christy? s minutess in footings of the accounting equation, which may be written? Assetss = Creditors? Claims + Owners? Claims. The net income of Christy? s Lemonade Stand may so be measured in footings of another equation: Grosss? Expenses = Net Income. You may desire to utilize the affiliated signifier to analyse the assorted minutess. There are 15 minutess that should be included in your analysis.

Analysis of Minutess

Christy? s Lemonade Stand

( ASSETS ) WHAT IS OWNED =What is Owed +OWNER? S CLAIMS

Trans # CashOther Assets ( Description and Amount ) LiabilitiesAmountIndicate if it is a gross, an disbursal, or an proprietor? s claim