College Accounting (Book Only): A Career Approach
12th Edition
ISBN: 9781305084087
Author: Cathy J. Scott
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 1A
Why Does It Matter?
MAC’S CUSTOM CATERING, Eugene, Oregon
Mac’s Custom Catering, an award-winning catering business located in Eugene, Oregon, specializes in providing “only the best for you and your guest.” Mac’s Custom Catering has been in business for over 30 years and is experienced in providing catering services at weddings, corporate events, and large sit-down events. It offers several signature buffet options, including “Northwest Bounty,” “Hawaiian Luau,” and “Italian Fest.”
Imagine that you have been hired to set up the accounting system for a catering business such as Mac’s. What accounts would be included in the chart of accounts? As you list the accounts, identify the type of account. Is the account an asset, a liability, or owner’s equity?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Bluth's Original Frozen Banana Stand is a brand of frozen banana stands that
operate at a variety of events and locations across Southern California. Recently
you spotted a Bluth's Original Frozen Banana Stand during a visit to Newport
Beach. On this beach, street vendors offer a variety of foods and drinks. At
the Bluth's Original Frozen Banana Stand, beach goers can purchase a chocolate
covered frozen banana covered with nuts for $4.00. For the purpose of this
hypothetical example, let's assume that the variable cost of each banana sold is
$1.00. There are three options of obtaining a Bluth's Original Frozen Banana
Stand.
Option 1: Pay a fixed rental fee to the Bluth Company for $2,100 per month
Option 2: Pay a fee of $1,040 per month plus 10% of all revenue from banana
sales
Option 3: Pay 25% of all revenue from the snow cone sales to Bluth Company
Using the hypothetical Bluth's Original Frozen Banana Stand example, calculate the number of
bananas that the operator of a Bluth's…
Accounting Question
Elsies Limited is a nationally recognized supplier of catering equipment. It offers safe and secure shopping via its online store and its state-of-the-art premises in each of the provinces of South Africa. The company offers a wide selection of catering equipment and supplies at competitive prices. The target market includes restaurants, hotels, hostels, and spaza shops. Their products carry an industry-leading warranty that is backed by good after-sales service and availability of spares. The company was established in 2015 with an authorised share capital of 1 500 000 ordinary shares of which 900 000 were issued at R2 each at the initial public offering in 2015.The financial manager and her team were in the process of forecasting the financial performance for 2024 and the financial position of the company as of 31 December 2024. The starting point was the following figures that were obtained from the financial statements for the year ended 31 December 2023:The sales amounted to R9…
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - Prob. 1PBCh. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - Prob. 3PBCh. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
Additional Business Textbook Solutions
Find more solutions based on key concepts
How is activity-based costing useful for pricing decisions?
Cost Accounting (15th Edition)
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
BE1-7 Indicate which statement you would examine to find each of the following items: income statement (IS), ba...
Financial Accounting
(a) Standard costs are the expected total cost of completing a job. Is this correct? Explain, (b) A standard im...
Managerial Accounting: Tools for Business Decision Making
Ravenna Candles recently purchased candleholders for resale in its shops. Which of the following costs would be...
Financial Accounting (12th Edition) (What's New in Accounting)
18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Responsibility in a restaurant. Paula Beane owns a restaurant franchise that is part of a chain of “southern homestyle” restaurants. One of the chain’s popular breakfast items is biscuits and gravy. Central Warehouse makes and freezes the biscuit dough, which it then sells to the franchise stores where it is thawed and baked in the individual stores by the cook. Each franchise also has a purchasing agent who orders the biscuits (and other items) based on expected demand. In March 2018, one of the freezers in Central Warehouse breaks down and biscuit production is reduced by 25% for 3 days. During those 3 days, Paula’s franchise runs out of biscuits but demand does not slow down. Paula’s franchise cook, Betty Baker, sends one of the kitchen helpers to the local grocery store to buy refrigerated ready-to-bake biscuits. Although the customers are kept happy, the refrigerated biscuits cost Paula’s franchise three times the cost of the Central Warehouse frozen biscuits, and the franchise…arrow_forwardDiscussion Prompt Steve and Linda Hom live in Bartlesville, Oklahoma. Two years ago, they visited Thailand. Linda, a professional chef, was impressed with the cooking methods and the spices used in Thai food. Bartlesville does not have a Thai restaurant, and the Homs are contemplating opening one. Linda would supervise the cooking, and Steve would leave his current job to be the maître d'. The restaurant would serve dinner Tuesday through Saturday. Steve has noticed a restaurant for lease. The restaurant has seven tables, each of which can seat four. Tables can be moved together for a large party. Linda is planning on using each table twice each evening, and the restaurant will be open 50 weeks per year. The Homs have drawn up the following estimates: Average revenue, including beverages and $45 per meal desserts Average cost of food 15 per meal Chef's and dishwasker's salaries 5,100 per month Rent (premises, equipment) 4,000 per month Cleaning (linen, premises) Replacement of dishes,…arrow_forwardEat-n-Run Inc. owns and operates 10 food trucks (mobile kitchens) throughout metropolitan Los Angeles. Each food truck has a different food theme, such as Irish-Mexican fusion, traditional Mexican street food, Ethiopian cuisine, and Lebanese-Italian fusion. The company was founded three years ago by Juanita OBrien when she opened a single food truck with a unique menu. As her business has grown, she has become concerned about her ability to manage and control the business. OBrien describes how the company was built, its key success factors, and its recent growth: I built the company from the ground up. In the beginning, it was just me. I drove the truck, set the menu, bought the ingredients, prepared the meals, served the meals, cleaned the kitchen, and maintained the equipment. I made unique meals from quality ingredients and didnt serve anything that wasnt perfect. I changed my location daily and notified customers of my location via Twitter. As my customer base grew, I hired employees to help me in the truck. Then one day I realized that I had a formula that could be expanded to multiple trucks. Before I knew it, I had 10 trucks and was hiring people to do everything that I used to do by myself. Now, I work with my team to build the menu, set daily locations for the trucks, and manage the operations of the business. My business model is based on providing the highest-quality street food and charging more for it than other trucks. You wont get the cheapest meal at one of my trucks, but you will get the best. The superior quality allows me to price my meals a little bit higher than the other trucks. My employees are critical to my success. I pay them a better wage than they could make on other food trucks, and I expect more from them. I rely on them to maintain the quality that I established when I opened my first truck. Things are going great, but Im feeling overwhelmed. So far, the growth in sales has led to a growth in profitabilitybut Im getting nervous. If quality starts to fall off, my brand value erodes, and that could affect the prices that I charge for my meals and the success of my business. Create balanced scorecard metrics for Eat-n-Run Inc. Identify whether these measures best fit the learning and growth, internal processes, customer, or financial performance perspective of the balanced scorecard.arrow_forward
- Zara Catering Enterprise (ZCE) provides catering services for customers around Selangor, Malaysia. The services are categorized into two segments namely, (1) Budget package and (2) Premium package. Information on the menu for the two packages are as below: Budget Package Menu Cost Premium Package Menu Cost RM RM White rice 1.00 2 choices of rice White rice/ briyani/ nasi minyak 2.00 Fried chicken 3.50 2 choices of main dishes Chicken/ meet/ fish 7.00 Vegetable 1.00 2 choices of vegetables 2.00 Fruit 1.00 2 choices of fruits 2.00 Drinks 1.00 Beverages 1.00 Dessert 0.50 Desserts 1.00 ZCE uses job order costing method in calculating its cost of providing services based on customers’ orders. Labors are paid on the daily basis when ZCE have…arrow_forwardRequired information [The following information applies to the questions displayed below.} Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavez's business is seasonal, with a heavy schedule during the summer months and holidays and a lighter schedule at other times. One of the major events Chavez's customers request is a cocktail party. She offers a standard cocktail party and has estimated the cost per guest as follows: Food and beverages Labor (0.5 hour e $10.00/hr.) Overhead (8.5 hour @ $13.98/hr.) $ 15.00 5.00 6.99 Total cost per guest $ 26.99 The standard cocktail party lasts three hours and Chavez hires one worker for every six guests, so that works out to one- half hour of labor per guest. These workers are hired only as needed and are paid only for the hours they actually work. When bidding on cocktail parties, Chavez adds a 15% markup to yield a price of about $31 per guest. She is confident about her estimates of the…arrow_forwardElsies Limited is a nationally recognised supplier of catering equipment. It offers safe and secure shopping via its onlinestore and its state-of-the-art premises in each of the provinces of South Africa. The company offers a wide selection ofcatering equipment and supplies at competitive prices. The target market includes restaurants, hotels, hostels and spazashops. Their products carry an industry-leading warranty that is backed by good after-sales service and availability ofspares. The company was established in 2015 with an authorised share capital of 1 500 000 ordinary shares of which900 000 were issued at R2 each at the initial public offering in 2015.The financial manager and her team were in the process of forecasting the financial performance for 2024 and financialposition of the company as of 31 December 2024. The starting point was the following figures that were obtained fromthe financial statements for the year ended 31 December 2023:The sales amounted to R9 600 000, and…arrow_forward
- Business Opportunity #1, Special Order: Another wedding cake company, Moon Dog Cake Company, has contacted Mr. Suncat with a special request. Moon Dog Cake Company needs some wedding cakes decorated. Moon Dog is proposing that they will bake the cake and deliver the undecorated wedding cakes to Suncat Cake Shop. Moon Dog is willing to pay Mr. Suncat $425 for each decorated wedding cake. Mr. Suncat knows that his Cake Shop has the capacity to take on the special order from Moon Dog Cake Company. Mr. Suncat also knows that the direct material and direct labor cost to decorate each wedding cake will be $375. Mr. Suncat’s manufacturing overhead per cake is $70.00 and that 65% of that amount is fixed. Should Mr. Suncat accept or reject Mood Dog Cake Company’s special request and why? Show all calculations to support your answer.arrow_forwardBusiness Opportunity #2, Make or Buy: Moon Dog Cake Company’s request got Mr. Suncat to thinking! Suncat Cake Shop is well known throughout the Albuquerque area for their beautifully decorated wedding cakes. Mr. Suncat is now wondering if the Cake Shop should solely concentrate on decorating the wedding cakes instead of making, baking, and decorating the cakes. In talking with Moon Dog Cake Company, Mr. Moon Dog quoted a price of $85 to Mr. Suncat for an undecorated wedding cake. Mr. Suncat knows that his direct material and direct labor to just make and bake a wedding cake is $65 and that total manufacturing overhead to just make and bake a wedding cake is $70, of which 25% are variable costs. Should Mr. Suncat continue to make/bake the wedding cakes, or should he buy the undecorated wedding cakes from Moon Dog Cake Company and why? Show all calculations to support your answer.arrow_forwardplease submit solution as soon as possiblearrow_forward
- I.M. Aruban has a sandwich shop in a downtown business district. Several ofhis customers have said that they would purchase from his shop more oftenif he offered a delivery service. I.M. is considering establishing a deliveryservice to meet the needs of his market. He believes that he will have to purchasea fax machine, install a new phone line for the fax machine, purchasea delivery van, and hire at least one delivery person. I.M. asks your advice indetermining whether he should take on the delivery service venture.a. What steps would you recommend that I.M. use in reaching a profitabledecision?b. Explain to I.M. what each step involves.arrow_forwardRahularrow_forwardDalluarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Relevant Costing Explained; Author: Kaplan UK;https://www.youtube.com/watch?v=hnsh3hlJAkI;License: Standard Youtube License