Author Question: Suppose your restaurant used one propane gas tank each month for three months during the summer to ... (Read 47 times)

Yi-Chen · **on:** Aug 10, 2018

Suppose your restaurant used one propane gas tank each month for three months during the summer to fuel a barbeque grill on the outside terrace. Also assume that the cost was 15.00 per tank (45.00 total cost for the year).

Should a separate cost in the property's supporting schedule for utilities be established? Why or why not?

Question 2

Blanc de Blanc is made from

a. Chardonnay
b. Pinot Noir
c. Pinot Meunier

d. None of the above

Sophiapenny · **Reply #1 on:** Aug 10, 2018

Answer to Question 1

While the cost must be recorded, it may not be necessary to set up a separate account for propane tanks. For example, the restaurant manager may use a miscellaneous utilities account in which these other non-electric, non-water utility charges are carried. This cost may also be considered a petty cash expense.

Answer to Question 2

A