Issue link: http://www.e-digitaleditions.com/i/176211
Background: © JOHN SCOTT, ISTOCK; Real World: JOHN SOMMERS II/GETTY IMAGES Accounti n g I n T h e R ea l Wo rl d Great Clips W hen you need a new hair style or a new hair color, you may think of Great Clips. But, does Great Clips come to mind when you think of NASCAR racing? You might be surprised to learn that Great Clips is one of the longest-running sponsors of the NASCAR Nationwide Series. Great Clips is a franchising operation. It was started near the University of Minnesota in 1982, by Ray Barton. Mr. Barton felt that the haircutting industry was changing and would soon be led by national franchise brands. With that in mind, Mr. Barton set out to grow the business. Currently, Great Clips is the largest no-appointment hair salon brand in North America, with over 2,700 salons. The Great Clips website states that its "hair salons are conveniently located in highvisibility strip malls and offer quality haircuts and perms for men, women, and children at competitive prices." What does all of this have to do with NASCAR? Great Clips is a primary sponsor of NASCAR and has its own car in the Nationwide Series. The Great Clips car won its first victory in 2003. As a service business similar to Delgado Web Services, each Great Clips salon keeps track of its own revenues and expenses. It must establish a list of accounts for recording its daily business transactions. 1. If you owned a Great Clips franchise, why might you support Great Clips' sponsorship of NASCAR racing? 2. What asset and liability accounts might a Great Clips salon use to record its transactions? 3. List at least two transactions that a Great Clips salon might record. Key Terms Analyzing Transactions into Debit and Credit Parts Chapter 2 31