Comprehensive Problem: Service Industry Essay

Objectives Demonstrate application of accounting concepts pertaining to a service company, including the spare-time activityselection of business form,journalization and smudgeing of daily transactions,creation of unadjusted mental test balance,adjustment of the accounts to properly report changes in balances, creation of fiscal statements, cessation of the closing process with earmark closing entries and posting to T accounts, role of book value for fixed assets, anddiscussion of companys financial position.As you proceed through this problem please refer to the Penn verbalise rules regarding Academic Integrity. It is very important that you cite your sources.Part 1 5% of Assignment GradeMonica Porter loves photography and wants to start her own company. She is single, 26 years old, and lives in an apartment in Nicetown. She has a parentage as a clerk in a grocery store that currently pays her living expenses. Her dream is to be a portrait photographer specializing in event s such as weddings, birthdays, graduations, etc. She has saved $10,000 to start this endeavor. She knows nothing nigh accounting and has hired you to provide her with accounting services as advantageously as guidance in starting this business. This first task is to run across which business organization entity she should choose. Please explain the different business formats and which star you would suggest for her business, which will be named Portraits by Porter (PBP).Part 2 85% of Assignment GradeMonica has followed your advice and on January 11, 2012, she deposited $10,000 into a business banking concern account for PBP and started pursuing her dream. It has been a hectic year, and in June Monica contacts you to ask your advice in helping her to determine whether she can leave the grocery store and work the photography business full time. She provides you with a list of the things that have happened during the previous(prenominal) 6 months. She has applied for a small busin ess loan of $25,000 and has been told by her banker that sheneeds a set of books (whatever that means) and financial statements (?) along with a inclination of her fixed assets at book value. The banker told her that the books should be closed for the year as ended June 30, 2012, with corresponding financial statements.1. Create the journal for the transactions and post these to the T accounts (45 pts).2. Create the unadjusted trial balance (5 pts).3. Make the needful adjusted journal entries (6 pts).4. Create the adjusted trial balance (5 pts).5. know the financial statements income statement, retained earnings, and balance sheet (15 pts).6. Close the books using appropriate journal entries with T accounts (5 pts).7. Determine the BV of the fixed assets (4 pts).PART 3 10% of assignment gradeDiscuss the economic position of BPB and what you would advise Monica concerning her job at the grocery store.