scoot - Part 1 Prepare accounting records and financial...

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Part 1: Prepare accounting records and financial statements for a small business - Scoot! Preface This term project task is dedicated to accounting legend, Luca Pacioli, and skateboarding legend, Tony Hawk Part 1 of the term project describes a small business, Scoot!, and provides a glimpse of its accounting records. The amounts required to complete this task of the term project are in the accompanying accounting records. Note: this task is based on the analysis of very extensive narrative and detailed project documents. Please check the course website for announcements of any errors, omissions and clarifications to this term project description or project documents. The business concept Teeny Hawk had two passions: computers and scooting. A scooter is a skateboard with handlebars, two large rollerblade wheels, and a brake. The market for scooting is huge. The handlebars provide such a feeling of security that even people who have never stepped on a skateboard attempt simple maneuvers their first time out on a scooter. Experienced skateboarders and snowboarders have fun pushing scooters to their limits by reinventing the tricks they've mastered on other boards. Using the knowledge gained pursuing both his scooting and computing passions; Teeny developed a business plan for a scooter instruction business. He planned to bring scooter training right to the doorstep of anyone with internet access. Customers would prepay and book lessons on-line. The nearest available instructor, called a rider, would be automatically scheduled to give the session, at the time and place
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convenient for the customer. The rider would be informed of the details electronically via a text message on a digital cell phone. The digital phone service would be the main communications link between the business and its employees. The business prospects Customers would be charged $30 plus 7% GST for a one-hour session, which included use of scooter [Note: this project was drafted before the GST rate changed to 6%. A 7% rate is used throughout.]. Riders would earn $15 per lesson and would be paid monthly. If the business were to employ fifteen riders who worked on average ten hours a week from May to October Teeny projected major profits, provided the costs of operating the website could be kept to a minimum. When Teeny found an e- business service firm which was willing to provide both the website design and webhosting service for a percentage of the sales, without any upfront cost, Teeny felt certain the business would be a success. Teeny determined that for various tax and liability reasons the business should be incorporated. Starting Up Teeny decided to call the operation Scoot! Inc. Armed with a business plan, Teeny visited WebWonder, an e-business service firm, the firm which had agreed to work with Teeny to design and maintain Scoot!'s e-biz site for a percentage of the sales revenue. Teeny worked feverishly designing the site with WebWonder, incorporating the
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This note was uploaded on 04/24/2010 for the course AFM 101 taught by Professor Kennedy during the Spring '08 term at Waterloo.

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scoot - Part 1 Prepare accounting records and financial...

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