2nd Midterm Exam

EBD-301Accounting & Finance for

Entrepreneurs

Chapter 4: Preparing Trial Balance

Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit

Cash 17,784$ 17,784$ 17,784$ Acct Recble 1,318$ 1,318$ 1,318$ Office Equip 1,080$ 1,080$ 1,080$ Office Furniture 1,015$ 1,015$ 1,015$ Acct Payable 670$ 670$ 670$ Bratton Capital 20,000$ 20,000$ 20,000$ Bratton Draw 1,200$ 1,200$ 1,200$ Retained Earn 1,727$ Revenues 3,986$ 3,986$ 3,986$ 22,397$ 22,397$

Rent Expense 725$ 725$ 725$ Salary Expense 735$ 735$ 735$ Utilities Exp. 329$ 329$ 329$ Misc. Expense 470$ 470$ 470$

2,259$ Net Income 1,727$

24,656$ 24,656$ 24,656$ 24,656$

WORKSHEET

ACCOUNT NAME

Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet

Chapter 5: Payroll Accounting

• IRS requirements for businesses with employees

• Journal Accounts (4)• Items subject to payroll withholding• Importance of W-4 form• Employer portion of Payroll Taxes• Why Worker Compensation Insurance

Chapter 6: Taxation

• General Obligations of the employer• Hobby or Business?• Rules for Qualified Joint Venture• Qualifications for S-Corporation– Taxation of S-Corporations– Importance of K-1 Form

• Defining Family Partnerships• Limited Liability Companies:

organization, taxation

Chapter 7: Business Organization

• Decision Criteria• Principal Forms: extent of personal

liability• What does “piercing the corporate

veil” mean?

Chapter 8: Time Value

• Compute PVIF, FVIF, PVIFA, FVIFA (formulas provided)

• Compute present and future value of single sums of money

• Compute loan payments, amortization schedule (at least first 3 payments)

• Compute future value of an investment plan; e.g. 401(k), IRA

• Compute annuity values; e.g. Insurance Annuity, annuitizing a retirement plan