CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 4-4 Responsibility Statements for a Merchandising Business

CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON Determine net sales for department. 2.Determine cost of merchandise sold for department. 3.Calculate gross profit. 4.Record direct expenses of the department. 5.Calculate the departmental margin. DEPARTMENTAL MARGIN STATEMENT—AUDIO page

CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 4-4 COMPONENT PERCENTAGES ON DEPARTMENTAL MARGIN STATEMENTS Net Sales Departmental Margin Component Percentage for Departmental Margin ÷ = $49,222.61÷ = 14.3% $344, Component Percentages 20X320X220X1 Departmental Margin 14.3%13.4%13.1% page 112

CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 4-4 DEPARTMENTAL MARGIN STATEMENT—VIDEO page Determine net sales for department. 2.Determine cost of merchandise sold for department. 3.Calculate gross profit. 4.Record direct expenses of the department. 5.Calculate the departmental margin

CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 4-4 INCOME STATEMENT WITH DEPARTMENTAL MARGIN Prepare the heading. 2-6.Use information from the departmental margin statements. 7.Use information from the Income Statement columns of the work sheet. 8.Complete the income statement. 9.Calculate component percentages. page

CENTURY 21 ACCOUNTING © Thomson/South-Western 6 LESSON 4-4 STATEMENT OF STOCKHOLDERS’ EQUITY page 115

CENTURY 21 ACCOUNTING © Thomson/South-Western 7 LESSON 4-4 BALANCE SHEET page 116

CENTURY 21 ACCOUNTING © Thomson/South-Western 8 LESSON 4-4 BALANCE SHEET page 116

CENTURY 21 ACCOUNTING © Thomson/South-Western 9 LESSON 4-4 TERMS REVIEW responsibility statements income statement statement of stockholders’ equity capital stock retained earnings dividends balance sheet page 117