Introduction

The Basic Hotel and Restaurant Accounting course provides a basis for understanding hospitality accounting concepts and procedures. Students learn about the processing of hospitality financial data, and the flow of financial information in the accounting cycle that result in the production of financial statements. In this course, students recognize that accounting operations in today’s hotels and restaurants require specialized knowledge and skills by examining the most up to date industry information. Students gain insight into merchant accounts, forecasting and budgeting, and the effect of the SEC and Sarbanes- Oxley Act on financial reporting. They also learn about setting up an Internet store, and meeting today’s methods of doing business.

Prerequisites

Not Applicable.

Outlines 

Day 1:

• Generally Accepted Accounting Principles;

• Business Transactions;

• Accounting Income vs. Taxable Income; The Accounting Equation; Financial Statements

• Legal Business Structure; Taxation of Business Income

• Basic Financial Statements 

• Statement of Income;

• Equity Statements;

• Balance Sheet;

• Statement of Cash Flows

Day 2

• Preparation of the Balance Sheet;

• Asset Classification;

• Current Asset Accounts;

• Noncurrent Asset Accounts ;

• Liability Classification;

• Current Liability Accounts;

• Long- Term Liability Accounts; Bonds;

• Equity Classification;

• Proprietorship Equity Accounts;

• Partnership Equity Accounts;

• Corporation Equity Accounts;

• Limited Liability Company Equity Accounts

Day 3

• Preparation of the Income Statement;

• Revenue Classification;

• Sales Accounting;

• Expense Classification;

• Cost of Sales Expense;

• Inventory Systems;

• Other Business Expenses;

• Depreciation

• Origins of Bookkeeping;

• Bookkeeping Accounts;

• Learning Debits and Credits;

• Analyzing Business Transactions;

• The Nature of Debits and Credits;

• Contra Accounts; Normal Account Balance

Day 4

• Advantages of Computerized Systems ;

• Input Forms; Output Forms;

• Online Accounting System;

• Features of Accounting Packages;

• Standard General Ledger Modules;

• Selecting General Ledger Accounting Software

• Accounting Cycle;

• Tower Restaurant:

• A Computerized Demonstration;

• Conversion from Manual to Computer System;

• Journalizing the Monthly Business Transaction;

• Computerized Posting of the Special Journals; End-of- Month Accounting;

• Computation of Net Income or Loss;

• Computerized Financial Statements;

• Computerized General Ledger;

• Reversing Entries;

• Computerized Year- End Processing

Day 5

• Restaurant Income Statement;

• Significance of Restaurant Accounting;

• Food Sales Accounting;

• Beverage Sales Accounting;

• Cost of Sales;

• Operating Expenses;

• Restaurant Balance Sheet;

• Chart of Accounts for Restaurants;

• Food and Beverage Ratio Analysis; 

• Food Sales Statistics and Analysis;

• Beverage Sales Statistics

• Hotel Financial Statements for External Users;

• Hotel Income Statement for Internal Users;

• Departmental Statements; Revenue Accounting;

• Expense Accounting;

• Hotels with Casino Departments;

• Hotel Balance Sheet;

• Chart of Accounts for Hotels;

• Operating Ratios