This is the second part of the two-part restaurant project assignment. Your work for this phase...

  
 
 

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This is the second part of the two-part restaurant project assignment. Your work for this phase of the project should build on your submission from part one plus any feedback received. For the second part of the assignment, the goal is to prepare financial statements for your selected restaurant. Complete the following steps: 1. Refer to your Part 1 assignment. Review any feedback that you might have received and think about any additional accounts that might need to exist within the respective account categories. The minimum number of accounts for your restaurant should be as follows: Assets (6), Liabilities (4), Revenue (2), and Expenses (8). You can modify the number and name of the accounts in part 1 so that you do not have too many (or too few) accounts. In some submissions of Part 1, some accounts need to be combined per my feedback. Also, refer to the "Business Highlights" section on page 2 of this document for detail on certain items that need to be present in Part 2 of the Restaurant Project. 2. Create an Income statement for the year ended December 31, 2019 (10 points). You will need estimate numbers for total revenues and expenses related to the calendar year ended December 31, 2018. The jority of your revenue and expense accounts will be derived from your Part 1 assignment. For Part 2, this assignment, the goal is to assign/estimate numbers to each account. Be as realistic as possible in your number selection. One requirement is that your restaurant remain profitable for the year. I suggest that you try and put yourself in the mindset of the restaurant as to what the actual performance would/could be. 3. Create a classified balance sheet for the restaurant (10 points). Refer to page 4-20 and 4-21 for an example of classified balance sheet in the textbook. Be sure to classify assets into current and long-term and classify liabilities into current and long-term. In preparation of this statement, make sure that you reflect the restaurant owners taking 10% of current year net income as dividend. The retained earnings carried over from the previous year (2018) should be equal to $100,000. The last account that you populate will most likely involve a "plug" to keep your balance sheet in balance. Remember, the balance sheet must balance. All numbers (on all statements) should be reviewed for believability Below your balance sheet, show the calculation on how you get the ending balance of retained earnings based on the beginning retained earnings, net income and dividend. 4 Review the prepared financials and come up with an answer for each of the questions shown below (5 points) When uploading to Canvas include the answers to your questions in the submission window comment box. What is one positive thing that you would want to highlight? b. What is one negative thing you would want to highlight? What is one recommendation that you have for this restaurant based on the financials? e hp a Business Highlights/Items A. The business is a corporation. You can make any assumptions that you feel are necessary about par value, amount paid by investors to acquire stock of your restaurant, as well as the number of shares of stock authorized, issued, and/or outstanding. B. Although the business does the best it can to collect from catering customers, it is not always successful. Each year accounts are deemed uncollectable and written off. They use an allowance method for dealing with bad debts. C. The restaurant must own at least one type of long-term asset (e.g. property, plant, and equipment). Make sure you have included depreciation in your financials. D. Employees are paid on the 1st of every month for the work that they performed in the preceding month. E To provide certainty that business insurance will not expire the restaurant pays in advance insurance for the subsequent month of business. F. You may Ignore sales taxes and payroll taxes in this project. Submission: Upload the completed Excel file that contains the financials to Canvas. In addition, be sure to post your positive, negative, and recommendation for improvement based on the financials within the Canvas submission window as comment. Related to the Excel file, place each financial on its own tab within the workbook. Keep in mind that you are estimating the numbers for a one year period. As an example, if you think catering revenue for the year would be $100,000. Your income statement will show the $100,000. NOTE: This assignment should go pretty quick. I recommend using a template that you have previously created and adjusting it to fit your restaurant. Scoring: 25 Points Total C39 4 5 6 10 11 12 13 *222** *********28 7 CURRENT ASSETS 4 3 20 21 23 15 TOTAL CURRENT ASSETS 24 Clipboard 17 PROPERTY, PLANT AND EQUIPMENT Equipment Land Building 26 A 25 TOTAL ASSETS Y 30 22 TOTAL PROPERTY, PLANT, AND EQUIPMENT 32 34 5 27 IABILITIES AND EQUITY X✓ fx 26 28 CURRENT LIABILITIES Cash Accounts Receivable Food Inventory Catering Deposits READY B ASSETS as TOTAL CURRENT LIABILITIES 40 Salary & Wages Accounts Payable Uneamed Revenue Taxes Collected Customer Deposits Font BS $ C L D E h Alignment G a H A 25 TOTAL ASSETS 26 27 LIABILITIES AND EQUITY 28 29 CURRENT LIABILITIES 30 31 32 33 34 35 36 37 38 39 TOTAL CURRENT LIABILITIES 40 41 LONG-TERM LIABILITIES 42 43 44 TOTAL LIABILITIES 45 46 EQUITY 47 45 49 50 51 52 53 TOTAL EQUITY 54 55 TOTAL LIABILITIES AND EQUITY 56 ST 159 50 61 READY Salary & Wages Accounts Payable Uneamed Revenue Taxes Collected Customer Deposits # B IS BS 15.3 D E D7 7 Revenue 00 A 15 16 17 8 Menu Order Service 9 Catering Services 10 Total revenue 11 Cost of goods sold 12 13 Operating expenses 14 Utility Expense Phone and Internet Expense Salary and Wages Expense 18 19 120 21 X✓ fx B READY Gross profit Equipment Expense Advertising Expense Repairs and Maintenance Expense Furniture Expense Kitchen Supplies Expense 22 23 Operating income 24 Non-operating income and (expense) 15 BS Total operating expenses e C O + Con E a F A Operating expenses Utility Expense 5 6 7 28 29 30 31 Phone and Internet Expense Salary and Wages Expense Equipment Expense Advertising Expense Repairs and Maintenance Expense Furniture Expense Kitchen Supplies Expense B READY Total operating expenses Non-operating income and (expense) Interest expense Operating income Total non-operating items Net income IS 65 + D m a LL F This is the second part of the two-part restaurant project assignment. Your work for this phase of the project should build on your submission from part one plus any feedback received. For the second part of the assignment, the goal is to prepare financial statements for your selected restaurant. Complete the following steps: 1. Refer to your Part 1 assignment. Review any feedback that you might have received and think about any additional accounts that might need to exist within the respective account categories. The minimum number of accounts for your restaurant should be as follows: Assets (6), Liabilities (4), Revenue (2), and Expenses (8). You can modify the number and name of the accounts in part 1 so that you do not have too many (or too few) accounts. In some submissions of Part 1, some accounts need to be combined per my feedback. Also, refer to the "Business Highlights" section on page 2 of this document for detail on certain items that need to be present in Part 2 of the Restaurant Project. 2. Create an Income statement for the year ended December 31, 2019 (10 points). You will need estimate numbers for total revenues and expenses related to the calendar year ended December 31, 2018. The jority of your revenue and expense accounts will be derived from your Part 1 assignment. For Part 2, this assignment, the goal is to assign/estimate numbers to each account. Be as realistic as possible in your number selection. One requirement is that your restaurant remain profitable for the year. I suggest that you try and put yourself in the mindset of the restaurant as to what the actual performance would/could be. 3. Create a classified balance sheet for the restaurant (10 points). Refer to page 4-20 and 4-21 for an example of classified balance sheet in the textbook. Be sure to classify assets into current and long-term and classify liabilities into current and long-term. In preparation of this statement, make sure that you reflect the restaurant owners taking 10% of current year net income as dividend. The retained earnings carried over from the previous year (2018) should be equal to $100,000. The last account that you populate will most likely involve a "plug" to keep your balance sheet in balance. Remember, the balance sheet must balance. All numbers (on all statements) should be reviewed for believability Below your balance sheet, show the calculation on how you get the ending balance of retained earnings based on the beginning retained earnings, net income and dividend. 4 Review the prepared financials and come up with an answer for each of the questions shown below (5 points) When uploading to Canvas include the answers to your questions in the submission window comment box. What is one positive thing that you would want to highlight? b. What is one negative thing you would want to highlight? What is one recommendation that you have for this restaurant based on the financials? e hp a Business Highlights/Items A. The business is a corporation. You can make any assumptions that you feel are necessary about par value, amount paid by investors to acquire stock of your restaurant, as well as the number of shares of stock authorized, issued, and/or outstanding. B. Although the business does the best it can to collect from catering customers, it is not always successful. Each year accounts are deemed uncollectable and written off. They use an allowance method for dealing with bad debts. C. The restaurant must own at least one type of long-term asset (e.g. property, plant, and equipment). Make sure you have included depreciation in your financials. D. Employees are paid on the 1st of every month for the work that they performed in the preceding month. E To provide certainty that business insurance will not expire the restaurant pays in advance insurance for the subsequent month of business. F. You may Ignore sales taxes and payroll taxes in this project. Submission: Upload the completed Excel file that contains the financials to Canvas. In addition, be sure to post your positive, negative, and recommendation for improvement based on the financials within the Canvas submission window as comment. Related to the Excel file, place each financial on its own tab within the workbook. Keep in mind that you are estimating the numbers for a one year period. As an example, if you think catering revenue for the year would be $100,000. Your income statement will show the $100,000. NOTE: This assignment should go pretty quick. I recommend using a template that you have previously created and adjusting it to fit your restaurant. Scoring: 25 Points Total C39 4 5 6 10 11 12 13 *222** *********28 7 CURRENT ASSETS 4 3 20 21 23 15 TOTAL CURRENT ASSETS 24 Clipboard 17 PROPERTY, PLANT AND EQUIPMENT Equipment Land Building 26 A 25 TOTAL ASSETS Y 30 22 TOTAL PROPERTY, PLANT, AND EQUIPMENT 32 34 5 27 IABILITIES AND EQUITY X✓ fx 26 28 CURRENT LIABILITIES Cash Accounts Receivable Food Inventory Catering Deposits READY B ASSETS as TOTAL CURRENT LIABILITIES 40 Salary & Wages Accounts Payable Uneamed Revenue Taxes Collected Customer Deposits Font BS $ C L D E h Alignment G a H A 25 TOTAL ASSETS 26 27 LIABILITIES AND EQUITY 28 29 CURRENT LIABILITIES 30 31 32 33 34 35 36 37 38 39 TOTAL CURRENT LIABILITIES 40 41 LONG-TERM LIABILITIES 42 43 44 TOTAL LIABILITIES 45 46 EQUITY 47 45 49 50 51 52 53 TOTAL EQUITY 54 55 TOTAL LIABILITIES AND EQUITY 56 ST 159 50 61 READY Salary & Wages Accounts Payable Uneamed Revenue Taxes Collected Customer Deposits # B IS BS 15.3 D E D7 7 Revenue 00 A 15 16 17 8 Menu Order Service 9 Catering Services 10 Total revenue 11 Cost of goods sold 12 13 Operating expenses 14 Utility Expense Phone and Internet Expense Salary and Wages Expense 18 19 120 21 X✓ fx B READY Gross profit Equipment Expense Advertising Expense Repairs and Maintenance Expense Furniture Expense Kitchen Supplies Expense 22 23 Operating income 24 Non-operating income and (expense) 15 BS Total operating expenses e C O + Con E a F A Operating expenses Utility Expense 5 6 7 28 29 30 31 Phone and Internet Expense Salary and Wages Expense Equipment Expense Advertising Expense Repairs and Maintenance Expense Furniture Expense Kitchen Supplies Expense B READY Total operating expenses Non-operating income and (expense) Interest expense Operating income Total non-operating items Net income IS 65 + D m a LL F

Answer rating: 100% (QA)

Current Asset Asset Total current Assets Property Plant and Eq... View the full answer