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?