You are to assume the role of an accounting software consultant hired by Gator Guides, LLC, a swamp tour company. The owner wants you to prepare a chart of accounts as the initial software implementation project and also make recommendations related to accounting software applications.
Gator Guides, LLC is a limited liability company with one owner. The company has three revenue sources. The first one includes swamp tours on small airboats, large airboats and pontoons. The second source is snacks, apparel and souvenirs from the swamp store. The third source is photographs from the boats.
The company purchased three small airboats, two large airboats and two pontoons. The airboats were all paid for with cash and are paid in full. The two pontoons were financed, and the company still owes $2,000 on each.
The company leases the swampland used for the tours. They own the mobile home which is used for the main office, ticketing booth and souvenir shop. The company built a deck this year which is a plant asset for the company. The company also has other miscellaneous bills such as utilities, supplies, inventory, etc. which they typically receive terms of n/30.
The company has 15 employees, including guides, ticketing agents, an office manager and a bookkeeper. They contract out a shuttle service which brings the customers out to the swamp. The company also pays a commission to travel agents that promote the swamp tours in tourist areas. The company purchases brochures and pays for billboard and website maintenance. The company accepts cash, credit card, debit card and Apple Pay. From time to time, Gator Guides, LLC will contract with large corporate groups to provide tours. In those situations, Gator Guides will bill the corporate client and receive payment in the future.
The owner wants you to:
- Use the information provided by the owner to prepare a chart of accounts (at least 5 accounts) identifying whether the account is an asset, liability, equity, revenue or expense.
- You will then meet with the owner to review the chart of accounts
- Discuss options for accounting software applications including desktop and cloud computing
