Unhappy with his job as an Oil and Gas Engineer, Abdullah started a new business called Nasi Ulam Restaurant. For $300 Mr. Abdullah plans customized menus based on his clients needs. He creates vegetarian meals, special diets for those with health problems, or menus for families with little time for cooking. He sets aside a day for each client in which he packs up his red Alpha Romeo with pots and utensils, shops for food, and cooks 20 entrees in his clients home. Then he labels and either refrigerates or freezes the entrees and takes the dirty pans home with him. Abdullah requires that payment be made on the day services are rendered.

Before changing careers, Mr. Abdullah hired a career consultant. Together they decided that a career in cooking looked viable. First, he considered being a restaurant chef. Then, through the Internet, he found the Malaysia Personal Chef Association. I called them that day. I knew without a doubt that was what I am supposed to do, Mr. Abdullah says.

Mr. Abdullah took a course from the SME Bank Entrepreneurship on how to start a business, paid $2,000 in up-front costs, and determined the name for his business. By cooking in his clients homes, he avoided purchasing expensive equipment, such as extra sinks, to meet state requirements for commercial kitchens.

Instructions: Now that you have reviewed the case study above, answer the following questions on your own

Prepare the appropriate end-of-month reports for Nasi Ulam Restaurant for the month ending November 30 this year using the following account names and balances. (Please note: The following account names and balances were created for this case study.)

Cash in Bank 3,750.00

Computer Equipment 4,897.00

Cooking Equipment 1,281.00

Accts. Pay. The Computer Store 1,050.00

Accts. Pay. The Green Grocers 124.00

Abdullah, Capital 6,748.00

Abdullah, Withdrawals 3,000.00

Fees 6,500.00

Advertising Expense 75.00

Food Expense 1,244.00

Utilities Expense 175.00

Instructions: Read the following questions. As a class, discuss your responses

1. Discuss why Nasi Ulam Restaurant has no accounts receivable.
2. Discuss how Mr. Abdullah might use a computer in his business.
3. What are financial statements? Where does the preparation of financial statements fall in the accounting cycle?
4. When does a net loss occur?
5. What information does a balance sheet report about a business?