Impact Imports_revised

Impact Imports_revised - Accounting 350 Case #1 Impact...

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Accounting 350 – Case #1 Impact Imports Suzanne McDaniel is an interior designer in Boise, Idaho and for several years has traveled to Indonesia to find special pieces of furniture and other accessories for her clients’ homes and businesses. After observing the significant interest in unique Indonesian products, Suzanne and her husband, Drew, decided to open a warehouse in Boise, Idaho that would specialize in selling Indonesian imports to wholesale customers such as interior designers and architects, as well as retail customers. Drew quit his job as a sales manager and they began their search for a warehouse location in August of 2009. In September they found what they considered to be an ideal space in Southeast Boise, which is conveniently located near downtown and close to major freeways. Pre-Opening Period Drew and Suzanne initially invested $160,000 of personal funds and existing inventory with a cost of $80,000 in their new business and decided to call it “Impact Imports”. On September 21, 2009, they signed a renewable 24-month lease for the location they desired with a lease term beginning on October 1. The lease agreement required an upfront payment of $18,000, which covered the first six months of rent (covering October 2009 through March 2010) at the rate of $2,500 per month, plus an additional $3,000 damage deposit, which is non-refundable if the lease is cancelled. The grand opening was scheduled for November 1 st and the month of October was used to prepare the warehouse and to travel to Indonesia to hand select new pieces to include in their inventory. The prior tenant of the warehouse had been a martial arts center, so extensive paint and remodeling was necessary in order to create an eclectic, yet functional retail space. The cost
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Impact Imports_revised - Accounting 350 Case #1 Impact...

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