Accounting for a Merchandising Business
|
|
|
- Alexandra Douglas
- 8 years ago
- Views:
Transcription
1 Chapter 11 Accounting for a Merchandising Business ANSWERS TO SECTION 11.1 REVIEW QUESTIONS (text p. 428) The Merchandising Business Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 325
2 ANSWERS TO SECTION 11.1 EXERCISES (text p. 428) Exercise 1, p. 428 (Workbook Exercise) Complete the chart by filling in the blank spaces. Cost of goods Gross profit sold as a % sold as a % of selling of selling Selling price Cost price Gross profit price price $250 $ $100 % % $ $ 85 $ 40 % % Easy $ 80 $ 56 $ % % $ $ 75 $ 75 % % $300 $195 $ % % $225 $ $ 63 % % $ $ 54 $ % 40% More difficult $500 $ $ 70% % $200 $ $ 65% % $ $120 $ % 52% Exercise 2, p. 429 A. Year 1 Year 2 Year 3 Beginning inventory 100 units units units Merchandise purchased units 900 units units Goods available for sale 800 units units units Merchandise sold units units 800 units Ending inventory 300 units units 50 units 326 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
3 ANSWERS TO SECTION 11.1 EXERCISES (text p. 428) Exercise 2 (cont.) B. On the income statement for Year 3: Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Deduct: Ending Inventory Cost of Goods Sold Exercise 3, p. 429 Beginning Ending Cost of Goods Gross Profit Sales Inventory Purchases Inventory Goods Sold Profit 1. $ $ $ $ Exercise 4, p. 429 Cost of Goods Sold Calculation Beginning Inventory Purchases Total Merchandise Available for Sale Deduct: Ending Inventory Cost of Goods Sold Exercise 5, p Beginning Inventory Figure 2. Selling Price of the Goods Sold 3. Beginning Inventory Purchases Cost of Merchandise Available for Sale Deduct: Ending Inventory Cost of Goods Sold Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 327
4 ANSWERS TO SECTION 11.1 EXERCISES (cont.) Exercise 5 (cont.) 4. Gross Profit 5. Total Operating Expenses 6. Net Income ANSWERS TO SECTION 11.2 REVIEW QUESTIONS (text p. 433) Accounting Procedures for a Merchandising Business Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
5 ANSWERS TO SECTION 11.2 EXERCISES (text p. 433) Exercise 1, p. 433 GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 329
6 ANSWERS TO SECTION 11.2 EXERCISES (cont.) Exercise 2, p. 434 A. The final inventory figure appears on the and on the. B. Neither the nor the is known during the accounting period. C. The cost of goods sold figure is using a. D. Merchandise inventory is kept in two accounts. These are the and the. E. The normally shows the merchandise inventory figure as of the. F. At the fiscal year-end, the inventory is counted and valued at. G. The Merchandise Inventory account is adjusted. H. The is the only accounting entry made to the Merchandise Inventory account. I. Merchandise purchased during the fiscal period is debited to the. J. The Purchases account is a short form of. K. If merchandise is purchased on account, the account debited is. L. If a tire company purchases office supplies, the account debited is. M. For a merchandising business, the sales account is the. N. When a business using the periodic inventory system sells goods, there is no accounting entry to record the. O. The Freight-in account is used to accumulate the. Exercise 3, p. 434 Opening Inventory Purchases Freight-in Closing Inventory Cost of Goods Sold $ $ $5 000 $ Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
7 ANSWERS TO SECTION 11.3 REVIEW QUESTIONS (text p. 440) Work Sheet for a Merchandising Business Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 331
8 ANSWERS TO SECTION 11.3 EXERCISES (text p. 441) Exercise 1, p. 441 A. Bok Trading Company WORK SHEET Year Ended Dec. 31, 20 ACCOUNTS Bank Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Equipment Accum. Deprec. Equipment Accounts Payable GST Payable GST Recoverable PST Payable R. Bok, Capital R. Bok, Drawings Sales Purchases Freight-in Miscellaneous Expense Rent Expense Telephone Expense Utilities Expense Wages Expense Supplies Expense Insurance Expense Depreciation Equipment TRIAL BALANCE ADJUSTMENTS INCOME STATEMENT BALANCE SHEET DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
9 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 1 (cont.) B. Bok Trading Company Income Statement Year Ended December 31, 20 Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 333
10 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 1 (cont.) C. Bok Trading Company Balance Sheet December 31, Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
11 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 1 (cont.) D. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 335
12 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2, p. 442 A. Small Engine Sales and Service WORKSHEET Year Ended December 31, 20 ACCOUNTS Bank Accounts Receivable Merchandise Inventory Supplies Parts and Materials Prepaid Insurance Equipment Accum. Deprec. Equipment Truck Accum. Deprec. Truck Accounts Payable GST Payable GST Recoverable PST Payable H. Rohr, Capital H. Rohr, Drawings Revenue Sales Revenue Service Bank Charges Freight-in Miscellaneous Expense Purchases Rent Expense Telephone Expense Truck Expense Utilities Expense Wages Expense TRIAL BALANCE ADJUSTMENTS INCOME STATEMENT BALANCE SHEET DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
13 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) B. Small Engine Sales and Service Income Statement Year Ended December 31, 20 Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 337
14 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) C. Small Engine Sales and Service Balance Sheet December 31, Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
15 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) D. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 339
16 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) D. (cont.) GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 340 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
17 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) E. GENERAL LEDGER Bank Accounts Receivable Merchandise Inventory Supplies Parts and Materials Prepaid Insurance Equipment Acc. Deprec. Equip. Truck Acc. Deprec. Truck Accounts Payable GST Payable GST Recoverable PST Payable H. Rohr, Capital H. Rohr, Drawings Revenue Sales Revenue Service (Ledger continues on next page.) Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 341
18 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) E. (cont.) Bank Charges Freight-in Miscellaneous Expense Purchases Rent Expense Telephone Expense Truck Expense Utilities Expense Wages Expense Supplies Expense Parts and Materials Expense Insurance Expense Depreciation Equipment Depreciation Truck Income Summary 342 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
19 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 2 (cont.) F. Small Engine Sales and Service Post-Closing Trial Balance December 31, 20 ACCOUNTS DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 343
20 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 3, p. 443 A. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 344 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
21 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 3 (cont.) A. (cont.) GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 345
22 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 3 (cont.) B. GENERAL LEDGER Bank Accounts Receivable Merchandise Inventory Supplies Prepaid Insurance Land Building Accum. Deprec. Building Equipment Accum. Deprec. Equip. Trucks Accum. Deprec. Trucks Accounts Payable GST Payable GST Recoverable (Ledger continues on next page.) 346 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
23 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 3 (cont.) B. (cont.) PST Payable T. Barbini, Capital T. Barbini, Drawings Sales Advertising Expense Freight-in Miscellaneous Expense Purchases Telephone Expense Utilities Expense Wages Expense Supplies Expense Insurance Expense Depreciation Building Depreciation Equipment Depreciation Trucks Income Summary Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 347
24 ANSWERS TO SECTION 11.3 EXERCISES (cont.) Exercise 3 (cont.) C. Barbini Stone Products Post-Closing Trial Balance December 31, 20 ACCOUNTS DEBIT CREDIT ANSWERS TO SECTION 11.4 REVIEW QUESTION (text p. 451) Merchandise Returns and Allowances Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
25 ANSWERS TO SECTION 11.4 REVIEW QUESTION (cont.) ANSWERS TO SECTION 11.4 EXERCISES (text p. 451) Exercise 1, p. 451 A. B. C. D. E. Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 349
26 ANSWERS TO SECTION 11.4 EXERCISES (cont.) Exercise 1 (cont.) F., G. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Exercise 2, p. 452 GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 350 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
27 ANSWERS TO SECTION 11.4 EXERCISES (cont.) Exercise 3, p. 453 A. B. C. D. E. F. G. Exercise 4, p. 453 Exercise 5, p. 454 C. Island Traders Partial Income Statement Year Ended December 31, 20 Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 351
28 ANSWERS TO SECTION 11.5 REVIEW QUESTIONS (text p. 459) Sales Discounts Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
29 ANSWERS TO SECTION 11.5 EXERCISES (text p. 459) Exercise 1, p Calculate the amount of the payment that is necessary in each case. Where credit notes are involved, assume the discount period is adjusted to start from the date on the credit note. Amount of of of Total of Terms of Amount of Credit Payment Payment Invoice Invoice Sale Credit Note Note Is Made Required Mar. 12 $ /10,n/30 Mar. 20 May Net 30 May 27 Sep /15,n/60 Oct. 10 Feb /20,n/60 $ Feb. 18 Mar. 6 Oct /10,n/ Nov. 5 Nov. 27 Aug /15,n/ Sep. 7 Sep. 10 Exercise 2, p Complete the following schedule by calculating the date that payment is required to pick up the discount, and the amount of the payment required. Amount of of of Total of Terms of Amount of Credit Payment Payment Invoice Invoice Sale Credit Note Note Is Made Required May 14 $ /10,n/30 Apr /20,n/60 $42.00 May 1 Jun /10,n/ Jun. 20 Nov /15,n/ Dec. 2 Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 353
30 ANSWERS TO SECTION 11.5 EXERCISES (cont.) Exercise 3, p. 460 A., B. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT C. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 354 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
31 ANSWERS TO SECTION 11.5 EXERCISES (cont.) Exercise 4, p. 461 A., B. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT C., D. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 355
32 ANSWERS TO SECTION 11.6 REVIEW QUESTIONS (text p. 465) Perpetual Inventory ANSWERS TO SECTION 11.6 EXERCISES (text p. 465) Exercise 1, p. 465 A. Additions to inventory are usually made from copies of. B. forces department stores to use the perpetual inventory system. C. In a computer inventory system, each inventory item is given a. D. The inventory system produces up-to-the-minute information that cannot be produced by the inventory system. 356 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
33 ANSWERS TO SECTION 11.6 EXERCISES (cont.) Exercise 1 (cont.) E. Deductions from inventory are usually made from copies of or through in a modern store. F. Any differences between the figures and the actual figures require an to the book figures. G. Even in a computer inventory system, a of the stock is necessary. H. A journal entry for a sale under the perpetual inventory system includes a debit to and a credit to. I. When buying inventory, the account is not used with the perpetual inventory system. J. Spoiled merchandise forces a debit to the account. Exercise 2, p. 466 A. INVENTORY CONTROL CARD Stock Number Description SCHAEFER CHEEK BLOCK Maximum 30 Location: Row l6 Bin 3 Minimum l0 Reference Unit Quantity Quantity Balance Cost Received Shipped on Hand Feb. 20 Forward S.O INVENTORY CONTROL CARD Stock Number Description 7l3-30ll BARTON CAM CLEAT Maximum 50 Location: Row 20 Bin 14 Minimum 20 Reference Unit Quantity Quantity Balance Cost Received Shipped on Hand Feb. 24 Forward S.O Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 357
34 ANSWERS TO SECTION 11.6 EXERCISES (cont.) Exercise 2 (cont.) B. Inventory values at cost: # # Exercise 3, p. 467 Shown below are some of the accounts (in T-account form) from the ledger of Master Security Systems. Master Security Systems has a computer accounting system and is able to keep its inventory and cost of goods accounts up to the minute. There is no account for Purchases. Assume that the bank account has a balance of $ Bank Sales Merchandise Inventory Cost of Goods Sold Record the journal entries for the following transactions directly into the ledger accounts above. Ignore freight-in, GST, and PST. When you finish recording the entries, calculate the balance of each account. Transactions 1. Purchased merchandise for cash at a cost of $ Sold goods for cash. The goods, recorded in the inventory at $6 000, are sold for $ (Note: There are two aspects of this transaction to record.) 3. Sold goods for cash. The goods, recorded in the inventory at $9 000, are sold for $ (Note: There are two aspects of this transaction to record.) 4. Purchased merchandise for cash at a cost of $ Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
35 ANSWERS TO SECTION 11.6 EXERCISES (cont.) Exercise 4, p. 468 A. THE BOOKS OF FLEET FOOT RUNNERS GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 359
36 ANSWERS TO SECTION 11.6 EXERCISES (cont.) Exercise 4 (cont.) B. IN THE BOOKS OF LAU S SPORTS WAREHOUSE Note: The running shoes cost Lau s Sports Warehouse $19.95 per pair. GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 360 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
37 ANSWERS TO SECTION 11.7 COMPUTER REVIEW QUESTIONS (text p. 473) Simply Accounting Inventory Applications ANSWERS TO SECTION 11.7 COMPUTER EXERCISES (text p. 473) Exercise 1, p. 473 Exercise 2, p. 473 Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 361
38 ANSWERS TO SECTION 11.8 REVIEW QUESTIONS (text p. 477) Manufacturing Business A Comparison Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
39 ANSWERS TO SECTION 11.8 EXERCISES (text p. 477) Exercise 1, p. 477 Exercise 2, p. 478 Cull s Novelties Manufacturing Statement Year Ended December 31, 20 Raw materials Opening inventory of raw materials $ Raw materials purchased $ Freight charges Cost of raw materials purchased (1) Raw materials available for use (2) $ Less: Ending inventory of raw materials (3) Raw materials used $ Direct labour Factory overhead Indirect labour $ Factory supplies used Property taxes Depreciation of factory and equipment Utilities Maintenance Total factory overhead costs (4) Total manufacturing costs (5) $ Add: Goods in process inventory, January Total goods in process during the year (6) $ Deduct: Goods in process inventory, December 31 (7) Cost of goods manufactured $ Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 363
40 ANSWERS TO SECTION 11.8 EXERCISES (cont.) Exercise 3, p Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
41 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (text p. 480) Exercise 1, p. 480 Using Your Knowledge GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 365
42 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 2, p. 480 GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT 366 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
43 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 2 (cont.) GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Exercise 3, p. 481 Indicate whether each of the following statements is true or false by placing a T or an F in the box indicated. Explain the reason for each F response in the space provided at the end of the exercise. A. A wholesaler is a merchandiser. Therefore, a merchandiser is a wholesaler. B. Some of the goods found in the inventory of a hardware store are also goods found in the inventory of a building supply store. C. Merchandise inventory is on the balance sheet under Prepaid Expenses. D. The cost of goods sold figure normally includes the cost of goods that are lost, stolen, or broken. E. The merchandise inventory of a drug store is calculated by counting all of the goods on hand and multiplying by the selling prices marked on the goods. F. An item that cost $40 and sold for $80 produced a gross profit of 50 per cent of the selling price. G. The difference between the selling price and the cost price of the goods for a fiscal period is also the net income figure before any operating expenses are deducted. H. The goods not sold represent the ending inventory. I. The goods sold at selling prices represent the revenue figure. J. The perpetual inventory system has not been commonly used because of the amount of work required to keep track of the many individual items in the inventory. K. A used car business could easily use the perpetual inventory system because the number of items in its inventory is quite small. Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 367
44 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 3 (cont.) L. XYZ department store uses the periodic inventory system. It must take a physical inventory at least once a year. M. A perpetual inventory results in a calculated inventory figure. The inventory quantities shown on a perpetual inventory listing should be checked by actually inspecting the inventory from time to time. This would make clear whether or not any goods had been stolen. N. If the beginning inventory was units and the ending inventory was units, the business sold more units than it purchased. O. The merchandise inventory figures can be found during the fiscal period from the Merchandise Inventory account. P. The Purchases account is used to accumulate all purchases during the period. Q. When a business that uses the periodic system sells goods, no accounting entry is made to reduce the merchandise inventory. If it were made, this entry would be: Debit Cost of Goods Sold and Credit Merchandise Inventory. R. The Freight-in account is used to accumulate all transportation charges during the fiscal period. S. Freight-in is considered to be a cost of the goods acquired. T. On the work sheet, the Purchases figure in the trial balance is extended to the Income Statement section, Debit column. U. On the work sheet, the Merchandise Inventory figure in the trial balance is extended to the Balance Sheet section, Debit column. V. Both the beginning and the ending inventory figures are shown on the income statement of a merchandising company. W. The Merchandise Inventory account is automatically adjusted by the closing entries. X. A credit invoice is issued by the vendor and received by the buyer. Y. The accounting entry for a credit note issued is either: DR CR a. Accounts Receivable $$$$ Sales $$$$ or b. Accounts Receivable $$$$ Sales Returns and Allowances $$$$ Z. The best match for Merchandise Inventory on a balance sheet of a manufacturing company is Raw Materials Inventory. 368 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
45 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 3 (cont.) Explanations for F Responses: Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 369
46 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 4, p. 482 Master Security Systems Income Statement Year Ended December 31, Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
47 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 5, p. 483 A. Fill in the blanks to complete the statement. Green s Garden Centre Income Statement Years Ended December 31, 201 and Sales $ $ Costs of Goods Sold Opening Inventory $ $ Purchases Goods Available for Sale $ $ Less Closing Inventory Cost of Goods Sold $ $ Gross Profit $ $ Expenses $ $ Net Income $ $ B. a. b. C. Exercise 6, p. 483 A. Quantity on hand to start Receipts and shipments #460 #911 Quantity on hand at end B. Inventory value for item #460 Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 371
48 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 7, p. 483 (Note: The key to this exercise is that the gross profit figure is 40 per cent of the sales figure.) Sutton Hardware Store Estimated Income Statement Month Ended January 31, 20 Exercise 8, p. 484 Unaudited Net Income A. Add cost of new equipment Deduct depreciation on new equipment B. No change C. Add overcharge on repairs to auto D. Deduct supplies used E. Deduct inventory deduction Adjusted Net Income figure 372 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
49 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 9, p. 485 A. B. C. D. E. F. G. Exercise 10, p. 485 GENERAL JOURNAL PAGE DATE PARTICULARS P.R. DEBIT CREDIT Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 373
50 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Exercise 11, p Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
51 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Questions for Further Thought, p Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 375
52 ANSWERS TO CHAPTER 11 REVIEW EXERCISES (cont.) Questions for Further Thought (cont.) A Case for Further Thought, p CASE STUDIES (text p. 488) Case 1 Analyzing Income Statements for Two Merchandising Companies, p a. b. Case 2 Why Have Gross Profits Declined?, p Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
53 CASE STUDIES (cont.) Case 2 (cont.) Case 3 Squeeze Play?, p Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 377
54 CASE STUDIES (cont.) Case 3 (cont.) 5. Challenge Case 4 A Scheme To Save Income Tax?, p Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
55 CASE STUDIES (cont.) Challenge Case 5 Budgeting How Many Doughnuts Will the Grade 12s Eat?, p. 492 This page is left blank intentionally. Note: page 382 follows next. Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 379
56 CASE STUDIES (cont.) This page is left blank intentionally. 380 Accounting 1 Student Workbook Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario
57 CASE STUDIES (cont.) This page is left blank intentionally. Copyright 2002 Pearson Education Canada Inc., Toronto, Ontario Chapter 11 Accounting for a Merchandising Business 381
DRAFT. Accounting for a Merchandising Business. SECTION 10.1 REVIEW QUESTIONS (page 401) 1. 5. 6. 7. 8. 10. 11. 12. 13. 14. 15. 16. 17.
CHAPTER 10 Accounting for a Merchandising Business SECTION 10.1 REVIEW QUESTIONS (page 401) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 324 Accounting 1 Student Workbook Copyright 2013 Pearson
Accounting for a Merchandising Business
CHAPTER 10 Accounting for a Merchandising Business SECTION 10.1 REVIEW QUESTIONS (page 401) 1. A service business sells a service to the general public but does not deal in merchandise. For example, a
Completing the Accounting Cycle
Chapter 9 Completing the Accounting Cycle ANSWERS TO SECTION 9.1 REVIEW QUESTIONS (text p. 307) The Adjustment Process 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 218 Accounting 1 Student
Merchandising Operations
5 Merchandising Operations WHAT YOU PROBABLY ALREADY KNOW You want to order a pair of pants from a mail-order catalog. The price listed in the catalog is $50. There is a 10% off coupon in the catalog for
The Measurement of the Business Income. 1 by recording revenues when earned and expenses when incurred. 2 by adjusting accounts
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
CHAPTER 6. Accounting for retailing CONTENTS
CHAPTER 6 Accounting for retailing CONTENTS 6.1 Journal entries periodic inventory system 6.2 Journal entries involving discounts, closing entries and statements of financial performance both perpetual
Chapter 5. Accounting for merchandising operations. Appendix 5A: Periodic inventory system
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
Self-test Comprehensive Problems II 综 合 自 测 题 II
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
Account Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.
Chart of Accounts The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define
SECTION 8.1 REVIEW QUESTIONS (page 275)
CHAPTER 8 Completing the Accounting Cycle SECTION 8.1 REVIEW QUESTIONS (page 275) 1. Year-end financial statements are superior to interim financial statements because all accounts are brought up to date,
ANSWERS TO QUESTIONS FOR GROUP LEARNING
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
Income Statements. Accounting for Merchandising Operations
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
2. A service company earns net income by buying and selling merchandise. Ans: False
Chapter 6: Accounting For Merchandising Activities True/False 1. Merchandise consists of products that a company acquires for the purpose of reselling them to customers. 2. A service company earns net
Inventories: Measurement
RECORDING AND MEASURING INVENTORY TYPES OF INVENTORY There are two types of inventories depending on the kind of business operation. Merchandise Inventory A merchandising concern buys and resells inventory
1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.
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
Chapter 5 Accounting for Merchandising Operations
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 5 Merchandising Operations
Chapter 5 Merchandising Operations Financial Statements of a Service Company and a Merchandiser: - Service Companies: Revenues earned through performance of services. Examples: Dentists, Accounting Firms,
Chapter 5. Merchandising Operations
Merchandising Operations Chapter 5 When a service business earns fees they record revenue from the services rendered. In the case of the merchandising business you still have the revenue transaction, but
ACCOUNTING 105 CONCEPTS REVIEW
ACCOUNTING 105 CONCEPTS REVIEW A note from the tutors: This handout is designed to help you review important information as you study for your cumulative final exam. While it does cover many important
CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY. True-False Statements
sg st a CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS SUMMARY OF QUESTIONS BY STUDY OBJECTIVES AND BLOOM S TAXONOMY Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT True-False Statements 1. 1
CHAPTER 6 ACQUISITIONS AND PAYMENT: INVENTORY AND LIABILITIES
CHAPTER 6 ACQUISITIONS AND PAYMENT: INVENTORY AND LIABILITIES Acquiring Merchandise for Sale Purchases (pp. 214-16) Purchase Discounts When a company takes advantage of a purchase discount, it reduces
ACCT1115. Review Package - Midterm SOLUTION Fall 2013
ACCT1115 Review Package - Midterm SOLUTION Fall 2013 Part I Multiple Choice 1) How should you record the purchase of an expensive automobile? a) Decrease cash, increase assets b) Decrease cash, increase
Chapter 13 Financial Statements and Closing Procedures
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)
CHAPTER 16. Non-current assets: Revaluation, disposal and other aspects CONTENTS
CHAPTER 16 Non-current assets: Revaluation, disposal and other aspects CONTENTS 16.1 Non-current asset disposals 16.2 Revaluation and disposal 16.3 Intangibles and natural resources 16.4 Goodwill and discount
SOLUTIONS. Learning Goal 16
Learning Goal 16: Prepare Closing Entries S1 Learning Goal 16 Multiple Choice 1. d 2. a 3. b 4. d Because drawing is closed directly into the capital account, not into income summary. 5. c 6. b This a
Financial Statements for Manufacturing Businesses
Management Accounting 31 Financial Statements for Manufacturing Businesses Importance of Financial Statements Accounting plays a critical role in decision-making. Accounting provides the financial framework
Vol. 1, Chapter 3 - Accounting Adjustments
Vol. 1, Chapter 3 - Accounting Adjustments Problem 1 1. ($20,000 2,000) 48 = $375 per month 2. Jan. 31 Depreciation Expense $375 Accumulated Depreciation Van $375 To record depreciation expense for January
ACC 211/212: Double Entry Logs
ACC 211/212: Double Entry Logs Journal Entries: o Credits are always indented (account name and value). o The sum of debits will always equal the sum of credits. o The month name is required only for the
The Statement of Cash Flows Direct Method
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
RAPID REVIEW Chapter Content
RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit
CHAPTER 12 ACCRUALS, DEFERRALS, AND THE WORKSHEET
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
Assignment 6: Adjusting Journal Entries and
Name: Due Date: December 12, 2011 Score: out of a possible 47 Course value: 7.5% Assignment 6: Adjusting Journal Entries and Worksheets A series of transactions are presented and their journal entries
Statement of Cash Flows
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
CONTENTS: Introduction to Financial Accounting BAF3M
CONTENTS: Introduction to Financial Accounting BAF3M Page No. READING STRATEGIES Getting Ready to Read: Previewing a Text 2 Student Resource: Complete the Prompts for Your Accounting Text 4 WRITING STRATEGIES:
Financial Statement Preparation Webinar. Presented by Nick Chapman VEI Program Coordinator New York City
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
BAF3M Final Exam Review January, 2013
BAF3M Final Exam Review January, 2013 Mr. Alexander Please bring a calculator, pencil(s), and erasers to the exam. Ipods, iphones, and other mobile devices will not be allowed. The exam will be two hours
Fundamentals of Financial Accounting
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
Chapter 8 Inventories: Measurement
Chapter 8 Inventories: Measurement AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools, departments, and faculty may
Start Your. Business Business Plan
Start Your Waste Recycling Business A TECHNICAL STEP-BY-STEP-GUIDE OF HOW TO START A COMMUNITY-BASED WASTE RECYCLING BUSINESS Start Your Waste Recycling Business Business Plan INTERNATIONAL LABOUR OFFICE
Century 21 Accounting, 8e General Journal Chapter Outlines
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
We now examine the documents and procedures used to perform each step. Step 1: Capture Transaction Data on Source Documents
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
GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12
GRAAD 12 NATIONAL SENIOR CERTIFICATE GRADE 12 ACCOUNTING NOVEMBER 2010 MARKS: 300 TIME: 3 hours This question paper consists of 21 pages and an answer book of 19 pages. Accounting 2 DBE/November 2010 INSTRUCTIONS
Gold Run Snowmobile. Adjusting Entries and Closing Entries For The Quarter Ended December 31. Final Project Evaluation. 5 th Edition.
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
Accounting Notes. Purchasing Merchandise under the Perpetual Inventory system:
Systems: Perpetual VS Periodic " Keeps running record of all goods " Does not keep a running record bought and sold " is counted once a year " is counted at least once a year " Used for all types of goods
IMPERIAL OIL LIMITED (in millions) December 31 1994 1993
C H A P T E R 5 Accounting for Merchandising Activities Many companies earn profits by buying merchandise and selling it to customers. Accounting helps managers to determine the amount of income earned
Purchasing/Human Resources/Payment Process: Recording and Evaluating Expenditure Process Activities
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
CHAPTER5 Accounting for Merchandising Operations 5-1
CHAPTER5 Accounting for Merchandising Operations 5-1 5-2 PreviewofCHAPTER5 Merchandising Operations Merchandising Companies Buy and Sell Goods Wholesaler Retailer Consumer The primary source of revenues
Sample Test for entrance into Acct 3110 and Acct 3310
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
Business Start Up Basics III
Business Start Up Basics III Intro to Accounting Presented by: Suzie Dills SBDC Business Consultant Agenda Key Objectives of the Course Brief History & Definition of Accounting General Ledger Double Entry
MARK SCHEME for the October/November 2011 question paper for the guidance of teachers 0452 ACCOUNTING. 0452/23 Paper 2, maximum raw mark 120
www.xtremepapers.com UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November question paper for the guidance of
PROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)
COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL
Accounting for Merchandising Companies: Journal Entries
PrinciplesofAccounting HelpLesson #4 Accounting for Merchandising Companies: Journal Entries By Laurie L. Swanson Merchandising Company A merchandising business is one that buys and sells goods in order
CHAPTER 5 ACCOUNTING FOR MERCHANDISING BUSINESSES
1. Merchandising businesses acquire merchandise for resale to customers. It is the selling of merchandise, instead of a service, that makes the activities of a merchandising business different from the
Advanced Accounting. Chapter 4: Financial Reporting for a Departmentalized Business
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
Accounting II Second Semester Final
Name: Class: Date: Accounting II Second Semester Final Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. 1. Profit is the difference between:
How To Calculate A Trial Balance For A Company
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 for Merchandising Operations
Instructor: masum 5-1 Bangladesh University of Textiles 5 Accounting for Merchandising Operations Learning Objectives After studying this chapter, you should be able to: [1] Identify the differences between
Chapter 4. Completing the accounting cycle
1 Chapter 4 Completing the accounting cycle 2 Learning objectives 1. Prepare an accounting worksheet and describe its purpose 2. Prepare a classified balance sheet and explain the major headings 3. Explain
She Wears A Bullet-Proof Vest:
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
SECTION IX. ACCOUNTING FOR INVENTORY
SECTION IX. ACCOUNTING FOR INVENTORY A. IAS 2 IAS 2 Inventories pertains to inventories that are: Assets held for sale in the ordinary course of business (finished goods and merchandise); Assets in the
Accruals and prepayments
5 Accruals and prepayments this chapter covers... In the last chapter we have looked at the preparation of financial statements or final accounts using the extended trial balance, or spreadsheet, approach.
NCEA Level 2 Accounting (91176) 2012 page 1 of 8. Sales 990 000 P. Cost of goods sold 586 000 P. Gross profit 404 000 S* Rent (received) 24 000 V
Assessment Schedule 2012 NCEA Level 2 Accounting (91176) 2012 page 1 of 8 Accounting: Prepare financial information for an entity that operates accounting subsystems (91176) Evidence Statement Question
MIDTERM EXAMINATION. Afaaq_tariq@yahoo.com. Fall 2009
MIDTERM EXAMINATION Afaaq_tariq@yahoo.com Fall 2009 FIN621- Financial Statement Analysis Asslam O Alikum FIN621- Financial Statement Analysis (Session 3) solved by Afaaq n Shani Bhai with reference n numerical
Study Guide - Final Exam Accounting I
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
Week 9/ 10, Chap7 Accounting 1A, Financial Accounting
Week 9/ 10, Chap7 Accounting 1A, Financial Accounting Reporting and Interpreting Cost of Goods Sold and Inventory Instructor: Michael Booth Understanding the Business Primary Goals of Inventory Management
Merchandise Inventory, Cost of Goods Sold, and Gross Profit. Pr. Zoubida SAMLAL
Merchandise Inventory, Cost of Goods Sold, and Gross Profit Pr. Zoubida SAMLAL 1 Accounting for Inventory Inventory (balance sheet) = Number of units of inventory on hand X Cost per unit of inventory Cost
CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS
CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS LEARNING OBJECTIVES 1. IDENTIFY THE DIFFERENCES BETWEEN SERVICE AND MERCHANDISING COMPANIES. 2. EXPLAIN THE RECORDING OF PURCHASES UNDER A PERPETUAL INVENTORY
b. Do not recognize revenue until steel is shipped. c. Do not recognize revenue until next year after the games are played.
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
Exercises - Chapter 9
Exercises - Chapter 9 Complete the following exercises. Assume that all these exercises use the perpetual inventory system. Exercise #1 1. hip top Shirt retailers bought $15,000 worth of shirts from Super
Accounting 300A-10A The Operating Cycle: Worksheet/Closing Entries Page 1
Accounting 3A-1A The Operating Cycle: Worksheet/Closing Entries Page 1 THE WORKSHEET and CLOSING ENTRIES I. Review of Key Concepts and Terms: A. The purpose of the worksheet 1. To show that the accounts
CHAPTER 2 ACCOUNTING FOR TRANSACTIONS
CHAPTER 2 ACCOUNTING FOR TRANSACTIONS Key Terms and Concepts to Know Double entry accounting: Debits and Credits Total debits must always equal total credits Accounting Books: Accounts General Journal
Equity The remainder is the shareholders claim on the assets-equity. It is often referred to as residual equity.
ACT 1600 Fundamental of Financial Accounting Chapter 1 The Basic Accounting Equation Asset = Liabilities + Equity Asset Assets are resources a business owns. The common characteristic possessed by all
Accounting Basics, Part 1
Accounting Basics, Part 1 Accrual, Double-Entry Accounting, Debits & Credits, Chart of Accounts, Journals and, Ledger Part 1 What s Here Introduction Business Types Business Organization Professional Advice
Merchandise Accounting
Merchandise Accounting Periodic vs. Perpetual N O T E : T h e tw o m eth ods differ on ly w h en th e costin g of in ven tory occu rs. Recall: All accounts associated with COGS (i.e. the cost of inventory)
AGENDA: JOB-ORDER COSTING
TM 3-1 AGENDA: JOB-ORDER COSTING A. The documents in a job-order costing system. 1. Materials requisition form. 2. Direct labor time ticket. 3. Job cost sheet. B. Applying overhead using a predetermined
(a) (i) Marking Scheme: 1 mark for definition and 1 mark for example.
T A S M A N I A N Accounting C E R T I F I C A T E Subject Code ACC5C O F E D U C A T I O N Question 1 T A S M A N I A N Q U A L I F I C A T I O N S A U T H O R I T Y (a) (i) Marking Scheme: 1 mark for
Basic Accounting. Supplement for Using Simply Accounting Version 8.0 for Windows by. M. Purbhoo and D. Purbhoo
Basic Accounting Supplement for Using Simply Accounting Version 8.0 for Windows by M. Purbhoo and D. Purbhoo Basic Accounting Contents: Accounting Theory 3 Basic Accounting 3 Balance Sheet 3 Income Statement
INVENTORY. Merchandising Firms COST OF GOODS SOLD. Traditional bookkeeping uses separate accounts for different types of transactions
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
ACCT 652 Accounting. Review of last week. Review of last time (2) 1/25/16. Week 3 Merchandisers and special journals
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
Classifying assets, liabilities, and owner s equity
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
Lesson 5: Inventory. 5.1 Introduction. 5.2 Manufacturer or Retailer?
Lesson 5: Inventory 5.1 Introduction Whether it is a brick and mortar or digital store, for many businesses, inventory management is a key cog of their operations. Managing inventory is an important key
Objective Evidence. Unit of Measurement. Accounting Period Cycle. Business Entity. Going Concern. Adequate Disclosure. Matching Expenses with Revenue
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
The worksheet for Hancock Company shows the following in the financial statement
Chapter 4 Do it! Susan Elbe is preparing a worksheet. Explain to Susan how she should extend the following adjusted trial balance accounts to the financial statement columns of the worksheet. Cash Accumulated
Study Guide Chapter 5 Financial
Study Guide Chapter 5 Financial 53. Merchandising companies that sell to retailers are known as a. brokers. b. corporations. c. wholesalers. d. service firms. 57. Gross profit equals the difference between
Student Solutions Manual to Accompany. Introduction to Financial Accounting. David Annand. Based on International Financial Reporting Standards
Student Solutions Manual to Accompany Introduction to Financial Accounting Based on International Financial Reporting Standards David Annand Copyright 2014 David Annand Published by David Annand 4910C
Bookkeeping Proficiency
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
Financial Statements Tutorial
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
Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS
Financial Accounting Study Guide Fall 2013 CH1 & 2 PART VI RATIOS Name: Selected information from the financial statements of Miller Company for the year ended December 31, 2012, appears below: 2012 Current
Inventories: Cost Measurement and Flow Assumptions
CHAPTER Inventories: Cost Measurement and Flow Assumptions OBJECTIVES After careful study of this chapter, you will be able to: 1. Describe how inventory accounts are classified. 2. Explain the uses of
7 Accounting for Sales and Accounts Receivable
7-1 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
Baseline Assessment. Date Accounting 1
Name Baseline Assessment Date Accounting 1 Part 1: Instructions: Place a check mark under the column for each account to determine which Financial the accounts belongs on. Financial Information 1. Cash
Closing Entries and the Postclosing Trial Balance
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
Accounting 201 Comprehensive Practice Exam 2C Page 1
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
PART A: TRUE/FALSE (1 point each):
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
DETAILS Chapter 11a: How to Prepare the Worksheet The Big Picture
2008 by Mark Krilanovich Mark Krilanovich November 22, 2008 ACCT 110 DETAILS Chapter 11a: How to Prepare the Worksheet The Big Picture 1. Chapters 9 and 10 introduced ten new accounts (see p. Ch. 9b and
COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries -
COMPLETION OF THE ACCOUNTING CYCLE - Closing Entries - Worksheet Overview Trial Balance Adjustments Adjusted Trial Balance Income Statement Balance Sheet Account Titles Debit Credit Debit Credit Debit