CASE 1 : CORI'S CATERING SERVICE (CCS) Cori is the owner and manager of catering company. CORI'S CATERING SERVICE provide complete meals (breakfast,lunch and dinner) as well as an assortment of hot and cold appitizers and drinks. For group of 30 to 300 . CCS receives order in three main ways; e-mail, telephone and personal office consultation. In some case, the costumer has an idea of what he/she wants; in others, the costumers relies on Cori's expertise to select approriate items. For each catering job. Cori prepares an estimate client which is documented in a Proposal Form; she files one copy of the estimate and sends the order to the client for approval. The client may make changes to the estimate over the phone via e-mail, or through a personal consultation. Once a estimate has been finalized, Cori prepares a Catering Contract for the client's signature. She requires 50% deposite with the signed contract: the remaining catering fees can be paid within 30 days of the catering event. Cori accepts cash and checks; she does not accept credit card. The clients signs thr contract and send it back to Cori. Cori also sign it, files a copy for her own records, and sends a copy with both signatures back to the client. Cori and her staff deliver the catering order as scheduled, and she bills the client through an Invoice for any remaining fees. The client fees the Invoice within 30 days and Cori deposits the funds in her bank account. Required: Prapare a flowchart for revenue and collection cycle of Cori's Catering Services.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
CASE 1 : CORI'S CATERING SERVICE (CCS)
Cori is the owner and manager of catering company. CORI'S CATERING SERVICE provide complete meals (breakfast,lunch and dinner) as well as an assortment of hot and cold appitizers and drinks. For group of 30 to 300 . CCS receives order in three main ways; e-mail, telephone and personal office consultation. In some case, the costumer has an idea of what he/she wants; in others, the costumers relies on Cori's expertise to select approriate items.
For each catering job. Cori prepares an estimate client which is documented in a Proposal Form; she files one copy of the estimate and sends the order to the client for approval. The client may make changes to the estimate over the phone via e-mail, or through a personal consultation. Once a estimate has been finalized, Cori prepares a Catering Contract for the client's signature. She requires 50% deposite with the signed contract: the remaining catering fees can be paid within 30 days of the catering event. Cori accepts cash and checks; she does not accept credit card. The clients signs thr contract and send it back to Cori. Cori also sign it, files a copy for her own records, and sends a copy with both signatures back to the client. Cori and her staff deliver the catering order as scheduled, and she bills the client through an Invoice for any remaining fees. The client fees the Invoice within 30 days and Cori deposits the funds in her bank account.
Required:
Prapare a flowchart for revenue and collection cycle of Cori's Catering Services.
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