Question

In: Accounting

Please do it by type not pics. The Early Break Restaurant (EBR) is a privately owned...

Please do it by type not pics.

The Early Break Restaurant (EBR) is a privately owned restaurant open seven days a week from 5:00 AM to 2:00 PM. EBR specializes in breakfast and lunch. It is owned and operated by Rose Marie. Rose acts as hostess (seating customers, maintaining a waiting list) and the only cashier. Her trusted friend, Morey Fennel, is the restaurant manager.  

Morey also prepares a weekly list of supplies that are needed by EBR and verifies each vendor order when it is delivered. Morey is very particular about these supplies and does not hesitate to have items returned to vendors. Sally's nephew, Andy, makes all the needed entries in the accounting information system (AIS). Rose seats customers at tables and servers greet customers and ultimately take their orders.  

The servers write customer orders on paper tickets which they bring to the kitchen for the line cooks to use in preparing the food. When the order is ready, the server picks up the food and the paper ticket. The server delivers the food, totals the ticket and when the customer is ready leaves it with the customer at the table. When ready to leave, the customer takes the ticket to Rose at the cash register. Rose takes the ticket, enters it into the cash register, takes the customer’s payment and makes the change as needed. On very rare occasions a customer refuses to pay all or part of their ticket due to perceived poor service or food. Rose writes the amount of the discount or nonpayment on the ticket.

  

At the end of the day, Andy makes all needed entries in the accounting information system and prepares a bank deposit daily which Rose takes to the bank.  

Morey prepares a list of inventory to order each week and gives it to Andy who places the order and records it in the accounting information system. When the order arrives from the vendor, Morey does a physical count of the items received and verifies this count to the delivery list or packing list. Morey inspects each of the items for quality and on occasion requests that received items be returned to the vendor. When this happens, he completes an item return form and places the items to be returned in a special place in the cooler or storeroom. The physical count, verified packing/delivery list, any discrepancies, and an item return form (if there is one) are left in the office for Rob. If there is an item return form, Andy contacts the vendor for permission to return the item. When the invoice arrives, Andy compares the invoice to the annotated packing or delivery list done by Buddy. He notifies the vendor of any needed changes to the invoice (e.g., return not reflected or a vendor mistake in the order) and prepares the check to make payment and makes all the needed entries in the accounting information system. After Rose signs the check, Andy mails it to the vendor.

1.Focusing on the revenue cycle, identify the sub-processes found in the Early Break Restaurant case?

2.For each of the revenue sub-processes identified list the activities that make up that sub-process, list activities in order of performance?

Solutions

Expert Solution

1 Revenue Cycle, sub processes
(i) Taking the order
(ii) Preparing the food
(iii) Delivering the food to the customer
(iv) Taking the payment from customers
2 List of activites that make up that sub process
(i) Taking the order
a Rose seats the customers at table
b Servers greet them
c Servers take their orders
(ii) Preparing the food
a Servers write customers order on paper ticket
b Bring that paper ticket to kitchen for line cook to use in preparing the food
(iii) Delivering the food to the customer
a When the food is ready, servers pick up the food and paper ticket from kitchen.
b Servers deliver the food to the customer at table.
(iv) Taking the payment from customers
a Servers totals the ticket
b Leaves the ticket with the customer at the table
c Customer takes the ticket to the Rose at the cash register
d Rose takes the ticket, enter it into the cash register
e takes the payment from customer
f Make any change as needed, if customer does not pay in full or part due to poor service or food quality.
g Rose writes the amount of nonpayment or discount on the ticket.

Related Solutions

Please do it by type not pics. 1.You are considering an investment in Roxie's Bed &...
Please do it by type not pics. 1.You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's income statement listed an addition to retained earnings of $10.20 million and common stock dividends of $3.10 million. Roxie's year-end balance sheet shows common stockholders' equity of $44.9 million with 19 million shares of common stock outstanding. The common stock's market price per share was $9.30. What is Roxie's Bed & Breakfast's book value per share?...
Please do it by type not pics. 1.Explain the factors that influence the ability of countries...
Please do it by type not pics. 1.Explain the factors that influence the ability of countries and populations to develop into modern industrialized countries? a.Per class discussion what role does the “rule of law” play in economic development? b.Why does your instructor believe this is the most important factor in economic development? c.Compare the role of TFP to capital accumulation is economic development d.Compare the divergence in the standard of living across the Earth two hundred years ago to that...
Please do it by type not pics. 1.The Great Recession (2007 to 2009) changed the nature...
Please do it by type not pics. 1.The Great Recession (2007 to 2009) changed the nature and direction of the macroeconomic debate because: a.the financial crisis threatened to collapse the entire economy, an outcome not predicted by classical models. b.the prior direction of the macroeconomic debate was on the New Classical and Real Business Cycle models. c.the technology boom of the 1990s seemed to validate the Real Business Cycle model. d.of all of the answers in this question. e.the recession...
Please do it by type not pics. Smithson, Inc. produces two types of gas grills: a...
Please do it by type not pics. Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson’s controller has decided to use a plant-wide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations:...
Please do it by type not pics. 1.Consider a 3.05 percent TIPS with an issue CPI...
Please do it by type not pics. 1.Consider a 3.05 percent TIPS with an issue CPI reference of 184.9. At the beginning of this year, the CPI was 191.6 and was at 201.5 at the end of the year. What was the capital gain of the TIPS in dollars? What was the capital gain of the TIPS in percentage?
Please do it by type not pics. Smithson, Inc. produces two types of gas grills: a...
Please do it by type not pics. Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson’s controller has decided to use a plant-wide overhead rate based on direct labor costs. The president of the company recently heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations:...
Please do it by type not pics. 1.The empirical tit of ttte production model: The table...
Please do it by type not pics. 1.The empirical tit of ttte production model: The table below reports per capita GDP and capital per person in the year 2014 for 10 countries. Your task is to fill in the missing columns of the table. a.Given the values in columns 1 and 2, fill in columns 3 and 4. That is, compute per capiiz GDP and capital per person relative to the U.S. values. b.In column 5, use the production model...
Please do it by type not pics. 1.Waller Co. paid a $0.153 dividend per share in...
Please do it by type not pics. 1.Waller Co. paid a $0.153 dividend per share in 2000, which grew to $0.333 in 2012. This growth is expected to continue. What is the value of this stock at the beginning of 2013 when the required return is 15.3 percent? 2.Consider a firm that had been priced using a 12 percent growth rate and a 14 percent required return. The firm recently paid a $2.05 dividend. The firm just announced that because...
Please do it by type not pics. 1.$2,000,000 ten year note with 10% interest. The market...
Please do it by type not pics. 1.$2,000,000 ten year note with 10% interest. The market rate is 8.5%. The interest payments are made monthly and interest compounds monthly. ·         How much cash was received in year 1?     ·         What was the amortized amount of the premium in year 2 - month 3?       ·         How much interest revenue was recognized in year 3 - month 4? ·         What is the carrying value of the note at the end...
Please do it by type not pics. 1.China Inc. sales rice to Wok This Way Inc....
Please do it by type not pics. 1.China Inc. sales rice to Wok This Way Inc. on account for $100,000. The terms of the sale are 3/10, n/30. China Inc. expects that Wok This Way Inc. will take the discount. Assume China Inc. uses the net method. What is the amount of sales discount debited when the payment is received in the discount period? 2.China Inc. sales rice to Wok This Way Inc. on account for $100,000. The terms of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT