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Raising Money
Updated 2/15/2024 PGD
You and Biker Bob have finally mustered the courage to ditch your day jobs and start a company that will serve the biking needs of your local community. You name this corporation Best Bikes, Inc. You and Biker Bob are elated and cannot wait to get started so you rush to the nearest realtor’s office to lease a commercial building for your Best Bike, Inc.’s retail shop. But, as you pull into the parking lot a realization dawns on you: you and Biker Bob need money for a lease! In fact, you and Biker Bob need money to carry out almost any activity relevant to your company. It is unlikely that the balance on Biker Bob’s debit card will cover the company expenses and maxing out your credit cards hardly seems like a wise financial decision.
How do you get money? How does any company get money? How do you keep track of and report this money? This lesson will review the different ways corporations raise funds and how we account for those funds.
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