Assignment: Restaurant T-Accounts

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• DueNo Due Date
• Points100
• Submittinga file upload

Introduction

Now that you’ve created the basis for your fictitious restaurant, you can explore more topics that will allow you to record business transactions for your enterprise.

Part 1

Your first step in the project is to write a one-page paper to explain the basis of your business. Which business form (sole proprietorship, partnership, corporation) did you choose and why? Explain the three basic financial statements that your business will rely on to make decisions now that it is up and running. Which financial statement do you think you would rely on the most? Why?

Part 2

Your business is up and running! Great work! You've successfully completed your first month in business. Now it's time to take a step back and ensure you are recording your business transactions appropriately, and that you can use your information to create trial balances and basic financial statements. Using the T Accounts Template sheet and the transactions you are given below, create and balance T-accounts for each required account. Use the resulting balances from your T-accounts to create a trial balance (make sure it balances), then use the trial balance to create the income statement and balance sheet.

Your transactions for the first month include:

• You invested $100,000 of your own cash in the business.
• You bought restaurant equipment for $10,000 cash.
• You advertised in the local paper for your grand opening, but have not paid the invoice yet. The cost was $500.
• You paid your kitchen staff $2,000 for their first four weeks of work.
• You paid your wait staff $1,000 for their first four weeks of work.
• You paid $1,000 rent for your building for the first month.
• Your sales to your customers were all cash and totaled $18,000.
• You paid $9,000 to stock your kitchen with food.

Submission Requirements

Submit the following documents by the due date. Be sure to follow these requirements in your work:

Part 1

• Type your assignment in an MS Word document (.doc or .docx).
• Do not copy word for word from the textbook or any websites you visit.
• Times New Roman, 12pt Font, double spaced

Please click the “Submit Assignment” link and follow the prompts to upload your assignment.

Part 2

• Type your assignment into a MS Excel document (.xls or .xlxs) using the template provided

Please click the “Submit Assignment” link and follow the prompts to upload your assignment.