Chapter 4 Accounting for Merchandising Operations.

Slides:

Advertisements

Similar presentations

© PHI Learning, All rights reserved.1 Financial Accounting: A Managerial Perspective Third Edition Prepared by R. Narayanaswamy Indian Institute.

Advertisements

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA McGraw-Hill/Irwin.

Accounting for Merchandising Operations

Reporting and Analyzing Merchandising Activities

Accounting for Merchandising Businesses

6-1 M ERCHANDISING T RANSACTIONS CHAPTER Service Organizations vs. Merchandising Companies time Service organizations sell time to earn revenue.

Chapter 5.  Businesses that sell a product to customers  Inventory ◦ Merchandise held for sale ◦ Asset account Copyright (c) 2009 Prentice Hall. All.

ACCOUNTING FOR MERCHANDISING OPERATIONS

The Operating Cycle and Merchandising Operations 6.

Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fourth Edition Wild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011.

5 Accounting for Merchandising Activities CHAPTER

MERCHANDISING COMPANY

Copyright © 2007 Prentice-Hall. All rights reserved 1 Merchandising Operations Chapter 5.

©The McGraw-Hill Companies, Inc. 2006McGraw-Hill/Irwin Chapter Five Accounting for Merchandising Businesses.

After studying this chapter, you should be able to: 1 identify the differences between a service enterprise and a merchandising company 2 explain the.

McGraw-Hill/Irwin © The McGraw-Hill Companies, Inc., Chapter 4 Reporting and Analyzing Merchandising Operations.

Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fifth Edition Wild, Shaw, and Chiappetta Fifth Edition McGraw-Hill/Irwin Copyright © 2013.

© The McGraw-Hill Companies, Inc., 2006 McGraw-Hill/Irwin Accounting for Merchandising Operations Chapter 5 5.

Accounting for Merchandising Businesses

Previous Lecture Operating Cycle of a Merchandising Company Comparing Merchandising Activities with Manufacturing Activities Retailers and Wholesalers.

Accounting for Merchandising Operations

Financial Accounting, Seventh Edition

Acct 2210: Chp 4 (Omit pg 227 & the Appendix) Accounting for Merchandising Businesses McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,

8-1 © 2010 The McGraw-Hill Companies, Inc. All rights reserved.

ACCOUNTING FOR MERCHANDISING OPERATIONS

Copyright © 2007 Prentice-Hall. All rights reserved 1 Merchandising Operations Chapter 5.

© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin Accounting for Merchandising Operations Chapter 5 5.

MERCHANDISING BUSINESS -joemargarciacunanan. DEFINITION OF TERMS Merchandise inventories – represent goods intended for sale. Inventories include only.

Perpetual Inventory System

5- 1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA.

Accounting for Merchandising Operations

Chapter 5 Merchandising Operations

PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Winston.

Reporting & Analyzing Merchandising Operations

Accounting for Merchandising Businesses

5 - 1 ©2002 Prentice Hall, Inc. Business Publishing Accounting, 5/E Horngren/Harrison/Bamber Merchandising Operations and the Accounting Cycle Chapter.

Unit 1.5 Accounting for a Merchandising Operation.

ACCOUNTING FOR MERCHANDISING OPERATIONS

Needles Powers Principles of Financial Accounting 12e Accounting for Merchandising Operations 6 C H A P T E R ©human/iStockphoto.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter Five Accounting for Merchandising Businesses.

© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin Chapter 4 Reporting and Analyzing Merchandising Operations.

5-1 Quest will occur on Thursday October 9 2 Unit 2: Chapter 5.

Accounting for Merchandising Activities PowerPoint Slides to accompany Fundamental Accounting Principles, 14ce Prepared by Joe Pidutti, Durham College.

6 Accounting for Merchandising Businesses Student Version.

STUDY OBJECTIVES After studying this chapter, you should understand: CHAPTER 6 ACCOUNTING FOR MERCHANDISING OPERATIONS CHAPTER 6 ACCOUNTING FOR MERCHANDISING.

Accounting for Merchandising Activities Accounting for Merchandising Activities C H A P T E R 5 Part 1.

5- 1 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA.

© Prentice-Hall of India Private Limited, All rights reserved.1 Financial Accounting: A Managerial Perspective Second Edition Prepared by R. Narayanaswamy.

Accounting for Merchandising Operations Chapter 4 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.

Controlling and Reporting Merchandise Sales Inventory Quantities Inventory Costs Financial Statements Unsold Inventory Balance Sheet Sold Inventory Income.

© The McGraw-Hill Companies, Inc., 2007 McGraw-Hill/Irwin Chapter 5 Accounting for Merchandising Operations.

Chapter 2 MR. MOHAMMED BABIKER - FALL-15/16 MR. MOHAMMED BABIKER - SPRING 15/16.

McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Merchandising Activities Chapter 6.

Chapter 4 Reporting and Analyzing Merchandising Operations Financial Accounting John J. Wild – Fifth Edition McGraw-Hill/Irwin Copyright © 2011 by The.

Chapter 5-1 Chapter 5 Accounting for Merchandising Operations Accounting Principles, Ninth Edition.

Financial Accounting John J. Wild Seventh Edition John J. Wild Seventh Edition Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction.

Chapter Four Accounting for Merchandising Businesses McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 5-1 CHAPTER 5 ACCOUNTING FOR MERCHANDISING OPERATIONS Accounting Principles, Eighth Edition.

Chapter Accounting for Merchandising Operations ACCT

Chapter Four Accounting for Merchandising Businesses McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 4 Accounting for Merchandising Businesses.

© 2009 The McGraw-Hill Companies, Inc., All Rights Reserved A CCOUNTING FOR M ERCHANDISING O PERATIONS Chapter 5.

Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 12 Merchandise Purchases and Accounts Payable.

5 Accounting for Merchandising Operations

Accounting for Merchandising Businesses

ACCOUNTING FOR MERCHANDISING OPERATIONS

Certified General Accountants

Financial Accounting Fundamentals

Presentation transcript:

Chapter 4 Accounting for Merchandising Operations

Merchandising Activities Service organizations sell time to earn revenue. Service organizations sell time to earn revenue. Examples: Accounting firms, law firms and plumbing services Service organizations sell time to earn revenue. Service organizations sell time to earn revenue. Examples: Accounting firms, law firms and plumbing services Revenues Expenses Minus Net income Equals C 1

ManufacturerWholesalerRetailerCustomer Merchandising Companies Merchandising Activities C 1

Reporting Income of a Merchandiser products Merchandising companies sell products to earn revenue. Examples: sporting goods, clothing, and auto parts stores Cost of Goods Sold Gross Profit Expenses Net Income Net Sales Minus Equals Minus Equals P2

Merchandise Purchases On June 20, Jason, Inc. purchased $14,000 of Merchandise Inventory paying cash. P1

Trade Discounts Used by manufacturers and wholesalers to offer better prices for greater quantities purchased. Used by manufacturers and wholesalers to offer better prices for greater quantities purchased. Example Matrix, Inc. offers a 30% trade discount on orders of 1,000 units or more of their popular product Racer. Each Racer has a list price of $5.25. Example Matrix, Inc. offers a 30% trade discount on orders of 1,000 units or more of their popular product Racer. Each Racer has a list price of $5.25. P1

Purchase Discounts A deduction from the invoice price granted to induce early payment of the amount due. Terms Time Due Discount Period Due: Invoice price minus discount Credit Period Due: Full Invoice Price Date of Invoice P1

2/10,n/30 Purchase Discounts Discount Percent Number of Days Discount Is Available Otherwise, Net (or All) Is Due in 30 Days Credit Period P1

Purchase Discounts On May 7, Jason, Inc. purchased $27,000 of merchandise inventory on account, credit terms are 2/10, n/30. P1

Purchase Discounts On May 15, Jason, Inc. paid the amount due on the purchase of May 7. *$27,000 × 2% = $540 discount P1

Transportation Costs FOB shipping point (buyer pays) FOB destination (seller pays) Merchandise Seller Buyer P1

Cost of Merchandise Purchased P1

Sales of Merchandise On March 18, Diamond Store sold $25,000 of merchandise on account. The merchandise was carried in inventory at a cost of $18,000. P2

Sales Discounts On June 8, Barton Co. sold merchandise costing $3,500 for $6,000 on account. Credit terms were 2/10, n/30. Let’s prepare the journal entries. On June 8, Barton Co. sold merchandise costing $3,500 for $6,000 on account. Credit terms were 2/10, n/30. Let’s prepare the journal entries. P2

Sales Discounts On June 17, Barton Co. received a check for $5,880 in full payment of the June 8 sale. P2

Single-Step Income Statement P4

Classified Balance Sheet P4