Hello,

I need an expert's help on this accounting case.

Betty and Greg Watts, local tennis stars, opened the Ace Coaching Clinic on 1 June 2015, by investing P200,000 of their cash savings in the business. Club rooms were constructed for cash at a cost of P60,000, and P8,000 was spent on tennis balls and tennis racquets. The Watts leased five hectares of land at a cost of P10,000 per month and paid the first month's rent. During the first month, advertising costs totaled P7, 500, of which P1, 500 was unpaid as at 30 June, and P4,000 was paid to members of the local high school tennis team for retrieving tennis balls. All revenue from customers was deposited in the business' bank account. On 15 June, Betty and Greg withdrew a total of P8,000 in cash for personal living expenses. A P1,000 utility bill was received on 30 June but was not paid. On 30 June, the balance in the business' bank account was P151,000. Betty and Greg thought they had a pretty good first month of operations. But their estimates of profitability ranged from a loss of P49,000 to profit of P16, 500. Instructions: Make a synthesis, statement of the problem, objectives, alternative courses of action and recommendation, learning points for this case Example of recommendation: The recommendation is to purchase an accounting program and a point of sale ticketing machine for the theatre. The benefit of a using an automated accounting system is that simple reports can be generated to include tracking of employee time, inventory, and transactions. With these benefits comes a lowered cost of bookkeeping and accounting, since the POS system will handle many of the necessary reports Example of Alternative Courses of Action: ACA 2: Purchase an accounting program and a point of sale (POS) ticketing machine for the theatre. This will enable them to track ticket revenues and operating expenses mu Ch easier since the balances will adjust automatically as the transactions are recorded. The program will be able to immediately distinguish the revenue for a specific time period, whether the tickets sold are for that month or the next. Using this accounting system will also make it easier for them to produce near real-time reports whenever the bank requests for financial reports. The only downside to this is the additional cost on the part of the owners of the theatre