2 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 1: Merchandise Sales Section Objectives 1. Record credit sales in a sales journal. 2. Post from the sales journal to the general ledger accounts.
3 7-3 Meet The Style Shop Mary Amos is the sole proprietor of the firm. The Style Shop is a merchandising business that sells the latest fashion clothing for men, women, and children. It is a retail business.
4 7-4 Journals Used by Merchandising Businesses Type of Journal Sales Purchases Cash receipts Cash payments General Purpose To record sales of merchandise on credit To record purchases of merchandise on credit To record cash received from all sources To record all disbursements of cash To record all transactions that are not recorded in another special journal and all adjusting and closing entries
5 7-5 Ledgers Used by Merchandising Businesses Type of Ledger General Accounts receivable Accounts payable Content Assets, liabilities, owner s equity, revenue, and expense accounts Accounts for credit customers Accounts for creditors
6 ASSETS 101 Cash 105 Petty Cash Fund 109 Notes Receivable 111 Accounts Receivable 112 Allowance for Doubtful Accounts 116 Interest Receivable 121 Merchandise Inventory 126 Prepaid Insurance 127 Prepaid Interest 129 Supplies 131 Store Equipment 132 Accumulated Depreciation - Store Equip. 141 Office Equipment 142 Accumulated Depreciation - Office Equip. LIABILITIES 201 Notes Payable Trade 202 Notes Payable Bank 205 Accounts Payable 216 Interest Payable 221 Social Security Tax Payable 222 Medicare Tax Payable 223 Employee Income Tax Payable 225 Federal Unemployment Tax Payable 227 State Unemployment Tax Payable 229 Salaries Payable 231 Sales Tax Payable OWNER S EQUITY 301 Mary Amos, Capital 302 Mary Amos, Drawing 399 Income Summary The Style Shop Chart of Accounts REVENUE 401 Sales 451 Sales Returns and Allowances 491 Interest Income 493 Miscellaneous Income COST OF GOODS SOLD 501 Purchases 502 Freight In 503 Purchases Returns and Allowances 504 Purchases Discounts EXPENSES 611 Salaries Expense - Sales 612 Supplies Expense 614 Advertising Expense 617 Cash Short or Over 626 Depreciation Expense - Store Equipment 634 Rent Expense 637 Salaries Expense - Office 639 Insurance Expense 641 Payroll Taxes Expense 643 Utilities Expense 649 Telephone Expense 651 Uncollectible Accounts Expense 657 Bank Fees Expense 658 Delivery Expense 659 Depreciation Expense - Office Equipment 691 Interest Expense 693 Miscellaneous Expense 7-6
7 General Journal and General Ledger Four credit sales made on January 3, 8, 11, and 15 require four separate entries in the general journal: Four debits to Accounts Receivable Four credits to Sales Tax Payable Four credits to Sales Four descriptions 7-7
8 GENERAL JOURNAL PAGE 2 Date 20-- DESCRIPTION POST. REF. DEBIT CREDIT Jan. 3 Accounts Receivable Sales Tax Payable Sales Sold merchandise on credit to Roy Anderson, Sales Slip Accounts Receivable Sales Tax Payable Sales Sold merchandise on credit to Cathy Ball, Sales Slip Accounts Receivable Sales Tax Payable Sales Sold merchandise on credit to Barbara Coe, Sales Slip Accounts Receivable Sales Tax Payable Sales Sold merchandise on credit to Amalia Rodriguez, Sales Slip
10 7-10 General Ledger ACCOUNT Sales ACCOUNT NO. 401 DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF. DEBIT CREDIT 20-- Jan. 3 J J , J , J ,000.00
11 Objective 1 Record credit sales in a sales journal 7-11 In a retail business such as The Style Shop, the data needed for each entry is taken from a copy of the customer s sales slip.
12 The Style Shop 2010 Trendsetter Lane Dallas, TX S Harris Sales Tax Total Roy Anderson 8913 South Hampton Road Dallas, TX SALES JOURNAL PAGE 1 SALES ACCOUNTS SALES TAX DATE SLIP CUSTOMER S NAME POST. RECEIVABLE PAYABLE SALES NO. REF. DEBIT CREDIT CREDIT 20-- Jan Roy Anderson
13 SALES JOURNAL PAGE 1 SALES ACCOUNTS SALES TAX DATE SLIP CUSTOMER S NAME POST. RECEIVABLE PAYABLE SALES NO. REF. DEBIT CREDIT CREDIT 20-- Jan Roy Anderson Cathy Ball Barbara Coe Amalia Rodriguez Fred Wu Linda Carter Kim Ramirez Mesia Davis Alma Sanchez Roy Anderson Totals 5,
14 Objective 2 Post from the sales journal to the general ledger accounts 7-14 With a sales journal it is not necessary to post each credit sale individually to general ledger accounts. Instead, summary postings are made at the end of the month after the amount columns of the sales journal are totaled.
15 SALES JOURNAL PAGE 1 SALES ACCOUNTS SALES TAX DATE SLIP CUSTOMER S NAME POST. RECEIVABLE PAYABLE SALES NO. REF. DEBIT CREDIT CREDIT 20-- Jan Roy Anderson Cathy Ball The 1103 general Barbara Coe ledger Amalia Rodriguez account 1105 Fred numbers Wu are entered 1106 Linda Carter parentheses Kim Ramirez under 1108 column Mesia Davis totals Alma Sanchez Roy Anderson Totals 5, , ACCOUNT Accounts Receivable ACCOUNT 5 NO. DATE EXPLANATION POST. DEBIT CREDIT BALANCE 1 REF. DEBIT CREDIT Jan. 1 Balance 3, J , J , S , (111) (231) (401) 111
16 SALES ACCOUNTS SALES TAX DATE SLIP CUSTOMER S NAME POST. RECEIVABLE PAYABLE SALES NO. REF. DEBIT CREDIT CREDIT 20-- Jan Roy Anderson Cathy Ball Barbara Coe Amalia Rodriguez Fred Wu Linda Carter Kim Ramirez Mesia Davis Alma Sanchez Roy Anderson Totals 5, , (111) (231) 5 (401) ACCOUNT Sales Tax Payable ACCOUNT NO. 231 DATE DESCRIPTION POST. DEBIT CREDIT BALANCE 1 REF. DEBIT CREDIT Jan. 1 Balance CP J J
17 SALES ACCOUNTS SALES TAX DATE SLIP CUSTOMER S NAME POST. RECEIVABLE PAYABLE SALES NO. REF. DEBIT CREDIT CREDIT Jan Roy Anderson Cathy Ball Barbara Coe Amalia Rodriguez Fred Wu Linda Carter Kim Ramirez Mesia Davis Alma Sanchez Roy Anderson Totals 5, , (111) (231) (401) ACCOUNT Sales ACCOUNT NO DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF. DEBIT CREDIT 20-- Jan. 31 Balance S1 5, ,450.00
18 7-18 Advantages of a Sales Journal Saves time, effort, and recording space Makes journalizing and posting more efficient Requires only three summary postings to the general ledger at the end of each month Allows division of work Improves the audit trail
19 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 2: Accounts Receivable Section Objectives 3. Post from the sales journal to the customers accounts in the accounts receivable subsidiary ledger. 4. Record sales returns and allowances in the general journal. 5. Post sales returns and allowances. 6. Prepare a schedule of accounts receivable.
20 7-20 The Accounts Receivable Ledger NAME Roy Anderson ADDRESS 8913 South Hampton, Dallas, Texas DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF Jan. 1 Balance Sales Slip 1101 S The accounts receivable ledger has three money columns. The BALANCE column is presumed to contain debit amounts.
21 Objective 3 Post from the sales journal to the customer s accounts in the accounts receivable subsidiary ledger 7-21 Each credit sale recorded in the sales journal is posted to the appropriate customer s account in the accounts receivable ledger.
22 7-22 The information is carried over from the sales journal to the A/R Customer s Ledger. SALES JOURNAL PAGE 1 SALES ACCOUNTS SALES TAX DATE SLIP CUSTOMER S POST. RECEIVABLE PAYABLE SALES NO. ACCOUNT DEBITED REF. DEBIT CREDIT CREDIT Jan Roy Anderson NAME Roy Anderson 3 ADDRESS 8913 South Hampton, Dallas, Texas DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF Jan. 1 Balance Sales Slip 1101 S
23 7-23 When a credit customer pays an outstanding bill, the cash collected is first recorded in a cash receipts journal. Let s put it in the CASH RECEIPTS JOURNAL
24 7-24 The cash is then posted to the individual customer account in the accounts receivable ledger. NAME Roy Anderson ADDRESS 8913 South Hampton Road, Dallas, TX DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF. DEBIT CREDIT Jan. 1 Balance Sales Slip 1101 S CR Posted from page 1 of the cash receipts journal
25 Objective 4 Record sales returns and allowances in the general journal 7-25 A sale is entered in the accounting records when the goods are sold or the service is provided. If something is wrong with the goods or service, the firm may take a sales return, or give a sales allowance.
26 7-26 A debit to the Sales Returns and Allowances account is preferred to making a direct debit to Sales. Sales Returns and Allowances Returns and Allowances
27 Business Transaction On January 23 The Style Shop issued Credit Memorandum 101 for a sales allowance to Fred Wu for merchandise purchased on account. The merchandise was damaged but still usable. The Style Shop NAME: Fred Wu ADDRESS: 2010 Trendsetter Lane Dallas, TX PHONE:
29 Objective 5 Post sales returns and allowances 7-29 Each sales return or allowance must be posted from the journal to the appropriate customer s account in the accounts receivable ledger.
30 Date 20-- Posting from the General Journal DESCRIPTION POST. REF. DEBIT CREDIT NAME Jan. 25 Sales Returns and Allowances Sales Tax Payable Linda Carter Accounts Rec./Linda Carter Accepted a return of defective merchandise, Credit Memorandum 102; original sale made on Sales Slip 1106 of January / indicates that the amount was posted to the Accounts Receivable account in the general ledger. The check mark indicates that the amount was posted to the customer s account. ADDRESS 1819 Belt Line Road, Dallas, TX DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF Jan. 1 Balance Sales Slip 1106 S CM 102 J
31 The Style Shop Income Statement (Partial) Month Ended January 31, 20-- Revenue Sales Less Sales Returns and Allowances $25, Net Sales $25,
32 Objective 6 Prepare a schedule of accounts receivable 7-32 The use of an accounts receivable ledger does not eliminate the need for the Accounts Receivable account in the general ledger. However, the Accounts Receivable account (in the General Ledger) is now considered a control account.
33 7-33 At the end of each month, after all the postings have been made, the balances in the accounts receivable ledger must be proved against the balance of the Accounts Receivable general ledger account. TOTAL OF INDIVIDUAL CUSTOMER BALANCES = ACCOUNTS RECEIVABLE BALANCE
34 The Style Shop Schedule of Accounts Receivable January 31, 20-- Roy Anderson Cathy Ball Linda Carter Barbara Coe Mesia Davis Kim Ramirez A comparison of the total of the schedule of accounts receivable and the balance of the Accounts Receivable account shows that the two figures are the same. Amalia Rodriguez Alma Sanchez Fred Wu Total ACCOUNT Accounts Receivable Account No. 111 DATE DESCRIPTION POST. DEBIT CREDIT BALANCE REF. DEBIT CREDIT Jan. 1 Balance J J S CR
35 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Accounting for Sales and Accounts Receivable Section 3: Special Topics in Merchandising Section Objectives 7. Compute trade discounts. 8. Record credit card sales in appropriate journals. 9. Prepare the state sales tax return.
36 Objective 7 Computing Trade Discounts 7-36 The basic procedures used by wholesalers to handle sales and accounts receivable are the same as those used by retailers. However, many wholesalers offer Cash discounts Trade discounts
37 7-37 Single Trade Discount Suppose the list price of goods is $1,500 and the trade discount is 40 percent. QUESTION: What is the net price? List price trade discount $1, ANSWER: $ 900
38 7-38 Series of Trade Discounts Suppose the list price is $1,500 and the trade discount is quoted as a series of 25 and 15 percent. QUESTION: What is the net price? List price - first discount - second discount $1, ANSWER: $956.25
39 Sales taxes apply only to retail transactions. A wholesale business does not need to account for sales taxes. SALES JOURNAL PAGE 1 ACCOUNTS DATE INVOICE CUSTOMER S POST. RECEIVABLE DR. NO. ACCOUNT DEBITED REF. SALES CR Jan Gabbert s Hardware Company 18, Neal s Department Store 4, Total 40, (111/401) The sales journal has a single amount column. 7-39
40 Advantages of Credit Sales The volume of both sales and profits will increase if buyers are given a period of a month or more to pay for the goods or services they purchase. Disadvantages of Credit Sales Sales on credit will lead to increases in profit only if each customer completes the transaction by paying for the goods or services purchased. If payment is not received, the expected profits become actual losses and the purpose for granting the credit is defeated. Therefore businesses need to closely analyze a customer s ability to pay before granting credit. 7-40
41 7-41 Types of Credit Sales Open-account credit Business credit cards Bank credit cards Cards issued by credit card companies
42 7-42 Objective 8 Record credit card sales in appropriate journals Method 1: No Separate General Ledger Accounts Businesses that have few transactions with credit card companies normally debit the amounts of such sales to the usual Accounts Receivable account in the general ledger and credit them to the same Sales account that is used for cash sales and other types of credit sales. Payment from a credit card company is recorded in the cash receipts journal.
43 7-43 Method 2: Separate General Ledger Accounts Firms that do a large volume of business with credit card companies might use separate general ledger accounts: Sales Credit Card Companies Accounts Receivable Credit Card Companies
44 Objective 9 Prepare the state sales tax return 7-44 At the end of each month, after the accounts have all been posted, The Style Shop prepares the sales tax return. Three accounts are involved: Sales Tax Payable Sales Sales Returns and Allowances
45 7-45 Sales Tax Computation Taxable Gross Sales for January $27, % Sales Tax Rate x 0.08 Sales Tax Due $ 2, , , % 27, ,188.00
46 7-46 Thank You for using College Accounting, 12th Edition Price Haddock Farina
Chapter 7 Skyline College 7-1 The three types of business operations are: A service business is a business that sells services. A merchandising business is a business that sells goods purchased for resale.
9-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Cash Receipts, Cash Payments, and Banking Procedures Section 1: Cash Receipts Section Objectives 1. Record cash receipts in a cash
Accounting for Sales, Accounts Receivable, and Cash Receipts Chapter 7 Kellogg's Company www.kelloggcompany.com More than 00 years ago, W.K. Kellogg created the firstever breakfast cereal, the single corn
Century 21 Accounting, 8e General Journal Chapter Outlines PART 1 Chapter 1 ACCOUNTING FOR A SERVICE BUSINESS ORGANIZED AS A PROPRIETORSHIP Starting A Proprietorship: Changes that Affect the Accounting
23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income
COMPUTERIZED ACCOUNTING SYSTEMS Basic Concepts of Accounting Information Systems Subsidiary Ledgers Special Journals Computerized accounting systems Manual accounting systems Example Advantages Sales journal
Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制
6-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter Closing Entries and the Postclosing Trial Balance 6 Section 1: Closing Entries Section Objectives 1. Journalize and post
CHABOT COLLEGE General Accounting (BUS-7) Dmitriy Kalyagin PART A: TRUE/FALSE (1 point each): EXAM #4 (Chapters 10, 12, 13) 1. Employees who are exempt from the FLSA are entitled for overtime pay for hours
Journals and Ledgers TRANSACTION PROCESSING: DOCUMENTS AND PROCEDURES IN A MANUAL AIS One basic function of the AIS is the efficient and effective processing of data about a company s transactions. Transaction
PowerPoint to accompany Chapter 8 Accounting Information Systems Learning Objectives 1. Describe an effective accounting information system 2. Understand both computerised and manual accounting systems
CENTURY 21 ACCOUNTING, 8e General Journal Chapter Objectives Chapter 1 Starting A Proprietorship: Changes that Affect the Accounting Equation After studying Chapter 1, you will be able to: 1. Define accounting
Recap from Week 3 The Measurement of the Business Income The primary objective of accounting is measuring the net income of the businesses according to the generally accepted accounting principles. Net
Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials Take a quick tour by visiting wwwaccountingcoachcom/quicktour Table of Contents (click to
Bookkeeping Proficiency (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials. Take a quick tour by visiting www.accountingcoach.com/quicktour. Table of Contents (click
4-1 McGraw-Hill 2009 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 The General Journal and the General Ledger Section 1: The General Journal Section Objectives 1. Record transactions in
CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET Chapter Opener: Thinking Critically Students may assess that an unexpected decline in sales would mean surplus inventory which would have to be reduced
ACCT 652 Accounting Week 4 Special Journals, Cash, and Internal Controls Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights
Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is
1 Chapter 5 Accounting for merchandising operations Appendix 5A: Periodic inventory system 2 Learning objectives 1. Record purchase and sales transactions under the periodic inventory system 2. Prepare
CHAPTER 19 Financial Statements for a Corporation BEFORE YOU READ 1. 2. 3. 4. 5. 6. What You ll Learn Explain how to record ownership of a corporation. Explain the relationship between the work sheet and
CHAPTER 18 Adjustments and the Ten-Column Work Sheet BEFORE YOU READ 1. 2. 3. 4. 5. 6. 7. What You ll Learn Describe the parts of a ten-column work sheet. Generate trial balances and end-of-period adjustments.
Chapter 8: Accounting for Purchases and Accounts Payable Chapter Opener: Thinking Critically Students may discuss one or more of the following merchandise selection tools: consumer surveys, customer requests,
Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger
Sample Test for entrance into Acct 3110 and Acct 3310 1. Which of the following financial statements could properly have the following in the date line: For the Year Ended December 31, 2010"? a. Balance
Accounting for a 5 Merchandising Business ANSWERS TO QUESTIONS FOR GROUP LEARNING Q5-1 A merchandising business has a major revenue reduction called cost of goods sold. The computation of cost of goods
Drill 1-D1 Classifying assets, liabilities, and owner s equity Classify each item listed below as an asset, liability, or owner s equity by placing a check mark in the Asset, Liability, or Owner s Equity
Unique Global Imports Simulation Helpful Hints FORM JOURNAL 1 Sales 2 Purchases 3 Cash Payments 4 Sales 5 Purchases 6 Cash Payments A-R Bank Statement Refer to page 124 to 125 in the textbook Additional
Chapter 5 Accounting for Merchandising Operations Purchase Transactions Purchaser records goods at cost. When goods are returned, purchaser reduces Inventory. On September 5, De La Hoya Company buys merchandise
Chapter 13 - Financial Statements and Closing Procedures Chapter 13 Financial Statements and Closing Procedures TEACHING OBJECTIVES 13-1) Prepare a classified income statement from the worksheet. 13-2)
ACS-1803 Introduction to Information Systems Instructor: David Tenjo Functional Area Systems Lecture 4 1 Overview Overview of Functional Areas in the organization Functional Area: Accounting Accounting
ACCT 652 Accounting Week 3 Merchandisers and special journals Some slides Times Mirror Higher Education Division, Inc. Used by permission Michael D. Kinsman, Ph.D. Review of last week Some highlights of
NCEA Level 2 Accounting (91176) 2013 Page 1 of 7 Assessment Schedule 2013 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Part A Question One
Job Ready Assessment Blueprint Accounting-Advanced Test Code: 3900 / Version: 01 Measuring What Matters Specific Competencies and Skills Tested in this Assessment: Journalizing Journalize an opening entry
Financial Statement Review: Financial Statements Tutorial There are four major financial statements used to communicate information to external users (creditors, investors, suppliers, etc.) - 1. Balance
Accounting Concept: A source document is prepared for each transaction Objective Evidence Accounting Concept: Business transactions are stated in numbers that have common values; that is, using a common
Veideretti Cabinets, Incorporated 2 nd Web-Based Edition Transactions for June 24-30, And the June 30 th Bank Reconciliation Page 1 TRANSACTIONS FOR JUNE 24-26 June 24: Paying an expense A $120 check (30429)
INTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes GENERAL INFORMATION FOR COMPLETING THE CLASS The following is a summary of the twelve chapters that you will be completing this semester. Be sure that
Accounting Principles, 7 th Edition Weygandt Kieso Kimmel Income Statements Accounting for Merchandising Operations Prepared by Naomi Karolinski Monroe Community College and Marianne Bradford Bryant College
Instructions for E-PLAN Financial Planning Template The EPLAN template will assist you in preparing financial projections for your existing business. The template uses Microsoft Excel to prepare your projected
Appendix A Review of Accounting Principles Appendix A is a review of basic accounting principles and procedures. Standard accounting procedures are based on the double-entry system. This means that each
ACCRUAL BASIS JUDGE: UNITED STATES BANKRUPTCY COURT NORTHERN & EASTERN DISTRICTS OF TEXAS REGION 6 MONTHLY OPERATING REPORT MONTH ENDING: MONTH YEAR IN ACCORDANCE WITH TITLE 28, SECTION 1746, OF THE UNITED
For the last several years Monte Cristo Corp. has operated with a gross profit rate of 30%. On January 1 of the current year, the company had on hand inventory with a cost of $150,000. Purchases of merchandise
Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total
Merchandising Firms Principles of Accounting Created 2005 By Michael Worthington Elizabeth City State University INVENTORY Traditional bookkeeping uses separate accounts for different types of transactions
COURSE GUIDELINE--Accounting Grade: 9- (Elective Course, offered one semester at a time) SUBJECT: Accounting TEACHER: Reimer STANDARD QTR. RESOURCES STRATEGIES ASSESSMENTS. Define accounting and explain
ACCOUNTING DICTIONARY A Account a record summarizing all the information pertaining to a single item in the accounting equation Account balance the amount in an account Account number the number assigned
Gold Run Snowmobile 5 th Edition Adjusting Entries and Closing Entries For The Quarter Ended December 31 and the Final Project Evaluation Page 1 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December
Fundamentals of Financial Accounting CHAPTER I Accounting in action. What is accounting? Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting
THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what
Accounting Self Study Guide for Staff of Micro Finance Institutions LESSON 5 Summarizing Changes in Financial Position OBJECTIVES The purpose of this lesson is to show how to summarize the transactions
NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA SPRING DISTRICT MEETING ACCOUNTING II 2010 TEST DIRECTIONS 1. Complete the information requested on the answer sheet. PRINT your name on the
www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June question paper for the guidance of teachers
She Wears A Bullet-Proof Vest: Detailed Solving Steps for the 2014 Regional Accounting Exam s Work Sheet Problems Prepared by: LaVerne Funderburk, CPA UIL Accounting State Contest Director 2014 UIL Capital
EXERCISE 7-3 (10 15 minutes) Current assets Accounts receivable Customers Accounts (of which accounts in the amount of $40,000 have been pledged as security for a bank loan) $79,000 Installment accounts
Accounting 201 Comprehensive Practice Exam 2C Page 1 1. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the
Advanced Accounting Chapter 4: Financial Reporting for a Departmentalized Business Financial statements are used to summarize financial info and then are used to evaluate the financial position and progress
TEACHING PRINCIPLES OF ACCOUNTING: HELPING STUDENTS IDENTIFY TEN DIFFERENCES WHEN COMPARING A TRIAL BALANCE, AN ADJUSTED TRIAL BALANCE AND A BALANCE SHEET William B. Pollard, Appalachian State University,
Learning Objectives LO1 Distinguish among service, retail merchandising, and wholesale merchandising businesses. LO2 Identify differences between a sole proprietorship and a corporation. LO3 Explain the
NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +
CHAPTER FOUR SE4-2 Revenue recognition a. Recognize revenue from car sales for 12,000. Notes receivable $12,000 Sales revenue $12,000 b. Do not recognize revenue until steel is shipped. c. Do not recognize
Financial Statement Preparation Webinar Presented by Nick Chapman VEI Program Coordinator New York City 122 Amsterdam Ave. New York, NY 10023 Phone: 212-769-2710 www.veinternational.org Objectives: Review
Business Plan A business plan is an integral part of a financing request. It is an introduction to your business, and it provides us with the initial information that we require to start to an application.
ookkeeping Quiz I. Match the account titles with the appropriate financial statement classification: A Current Assets Sales Property, Plant and Equipment Cash in Checking C Other Assets Accumulated Depreciation
Chapter 8 Purchasing/Human Resources/Payment Process: Recording and Evaluating Expenditure Process Activities McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved. What
Asset Accounts: Cash - includes money and any medium of exchange that a bank accepts at face value Accounts Receivable - a record of an oral or implied promise of future cash receipts in exchange for goods
Financial Statements Chapter 19 Study Guide Financial Statements Discuss the nature of a consolidated financial statement? Understand the relationship between the work sheet and the financial statements.
FINAL EXAM The Hashemite University, Department of Accounting, Dr Husam Al-Khadash Principle of Accounting, Name: Seat No. Student No. Question One (11 marks): Identify the answer of each of the following
1 ACCOUNTING 1 (ACN101- M) STUDY UNIT 1: THE NATURE AND FUNCTION OF ACCOUNTING DEFINITION: Accounting can be defined as the orderly & systematic recording of the monetary values of financial transactions
Granite Bay Jet Ski, Incorporated Level II 5 th Edition Transactions For June 24-30 Page 1 June 24 Issued the following checks as payment in full for miscellaneous billings: Check 31230 to Edwards Auto
MYOB US, Inc. April 2002 Accounting 101 Like all small business owners, you went into business with a dream: to sell your unique product or services and make a living for you, your family, and your employees.
PREPARING THE STATEMENT OF CASH FLOWS: THE INDIRECT METHOD OF REPORTING CASH FLOWS FROM OPERATING ACTIVITIES The work sheet method described in the text book is not the recommended approach. We will provide