TAILIEUCHUNG - Lecture Accounting principles – Chapter 5: Accounting for merchandising operations

In this chapter students will be able to: Describe the differences between service and merchandising companies, prepare entries for purchases under a perpetual inventory system, prepare entries for sales under a perpetual inventory system,. | Accounting for Merchandising Operations Merchandising operations Recording purchases of merchandise Recording sales of merchandise Completing the accounting cycle Merchandising financial statements Using the information in the financial statements Copyright John Wiley & Sons Canada, Ltd. 2 CHAPTER 5: Accounting for Merchandising Operations Describe the differences between service and merchandising companies. Prepare entries for purchases under a perpetual inventory system. Prepare entries for sales under a perpetual inventory system. Perform the steps in the accounting cycle for a merchandising company. Prepare single-step and multiple-step income statements. Calculate the gross profit margin and profit margin. Prepare the entries for purchases under a periodic inventory system and calculate cost of goods sold (Appendix 5A). Copyright John Wiley & Sons Canada, Ltd. Merchandising Operations Purchasing products to resell to customers Main source of revenue is sale of merchandise Called Sales Revenue, or simply Sales Two categories of expenses: Cost of Goods Sold: cost of merchandise sold Operating expenses: incurred in the process of earning sales revenue Gross profit: difference between Sales Revenue and Cost of Goods Sold Copyright John Wiley & Sons Canada, Ltd. 4 4 Income Measurement Process for a Merchandising Company Copyright John Wiley & Sons Canada, Ltd. 5 Perpetual Inventory System Maintains detailed records of inventory purchases and sales Continuously (perpetually) shows quantity and cost of inventory that should be on hand for each item Cost of Goods Sold is calculated and recorded at the time of each sale Copyright John Wiley & Sons Canada, Ltd. 6 6 Periodic Inventory System Detailed inventory records are not kept throughout the period Cost of Goods Sold is calculated only at the end of the accounting period (periodically) Copyright John Wiley & Sons Canada, Ltd. 7 CHAPTER 5: Accounting for Merchandising Operations Describe the differences between .

• Kế toán - Kiểm toán
• Accounting principles
• Lecture Accounting principles
• Financial reporting
• Merchandising operations
• Accounting for merchandising operations
• Merchandising company
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Accounting information
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting