内容分析案例fa chapter

1、ACCOUNTING FORMERCHANDISING ACTIVITIESSlide 6-1Chapter6Ø Operating cycle 营业周期- The average period between the purchase of merchandise and the conversion of thismerchandise back into cash.Slide 6-2Operating Cycle of a Merchandising CompanyCashAccounts ReceivableInventory2. Sale of merchandise on

2、 accountSlide 6-3Operating Cycle of a Merchandising CompanyManufacture inventory and have a longer and more complex operating cyclePurchase inventory in ready-to-sell condition.Manufacturing CompanySlide 6-4MerchandisingCompanyComparing Merchandising Activities with Manufacturing ActivitiesCost of g

3、oods sold销货成本represents the expense of goods that are sold to customers.Computer BarnCondensed Income StatementFor the Year Ended December 31, 2002Revenue from sales$ 900,000540,000Less:Cost of goods soldGross profit$ 360,000270,000Less:ExpensesNet income$90,000Gross profit is a useful means of meas

4、uringthe profitability of sales transactions.Slide 6-5Income Statement of a Merchandising CompanyExamples Revenues ExpensesFinancial Reporting RequirementsDaily Business Operating Requirements Customer LedgersSpecial Reporting Requirements Tax ReportsSlide 6-6What Accounting Information Does a Merch

5、andising Company Need?Although general ledger accounts provide useful information, they do not provide much of the detailed information needed in the daily business operations.General LedgerAccounts ReceivableWho owes us money?DateDebitCreditBalance2001June110,00010,000153,0007,000Slide 6-7General L

6、edger AccountsControlling Account统制账户General LedgerAccounts ReceivableDateDebitCreditBalance2001June110,00010,000Subsidiary Ledger153,0007,000Jake SparksSlide 6-8DateDebitCreditBalance2001June13,0003,000151,0002,000Subsidiary LedgerHeather JacobsDateDebitCreditBalance2001June17,0007,000152,0005,000S

7、ubsidiary Ledgers 明细分类账: A Source of Needed DetailsØ Accounts receivable (subsidiary)ledger 应收账款明细账- A list of all the charge customers and their respective balanceØ Accounts payable (subsidiary)ledger应付账款明细账- A list of all suppliers and their respective balanceØ Inventory subsidiary

8、ledger 存货明细账 (p.227)- separate account for each type of product in thecompanys inventorySlide 6-9Accounts receivable ledgerName: Address: Slide 6-10DateItemPost Ref.DebitCreditBalanceSubsidiary LedgersControlling Account inUnit of Organization Within theteral LedgerSubsidiary LedgerInventoryEach typ

9、e of product offered for salePlant assetsEach asset (or group of similar assets)Accounts payableEach creditorCapital stockEach stockholderSalesEach department, branch location, or product lineCost of goods soldSame organization as the sales ledgerMany expense accountsEach department incurring these

10、types of expensesPayroll expensesEach employeeSlide 6-11Perpetual Inventory SystemPeriodic Inventory SystemSlide 6-12The inventory account is continuously updated to reflect items on hand.Lets lookat some entries!Slide 6-13Perpetual Inventory System永续盘存制Slide 6-14GENERAL JOURNALDateAccount Titles an

11、d ExplanationDebitCreditSept.5Inventory3,000Accounts Payable (Electronic City)3,000On September 5, Worley Co. purchased 100 laser lights for resale for $30 per unit fromElectronic City on account .Perpetual Inventory SystemGENERAL JOURNAL10 * $30 = $300DateAccount Titles and ExplanationDebitCreditSe

12、pt.10Accounts Receivable (ABC Radios)500Sales50010Cost of Goods Sold300InventorySlide 6-15300GENERAL JOURNALRetailDateAccount Titles and ExplanationDebitCreditSept.10Accounts Receivable (ABC Radios)500Sales50010Cost of Goods Sold300InventoryCostSlide 6-16300On September 10, Worley Co. sold 10 laser

13、lights for $50 per unit on account to ABCRadios.Perpetual Inventory SystemSlide 6-17GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSept.15Accounts Payable (Electronic City)3,000Cash3,000Slide 6-18GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSept.22Cash500Accounts Receivab

14、le (ABC Radios)500On September 22, Worley Co. received $500 from ABC Radios as payment in full for theirpurchase on September 10.Perpetual Inventory SystemItem LL002Primary supplier Electronic CityDescription Laser LightSecondary supplier Electric CompanyLocation Storeroom 2Inventory level: Min: 25M

15、ax: 200 PurchasedSoldBalanceDateUnitsUnit CostTotalUnitsUnit CostCost of Goods SoldUnitsUnit CostTotalSept. 5100$30$3,000100$30$3,000Sept. 1010$30$30090302,700At the end of the period, management compares the physical inventory count 实地盘存 with the inventory ledger to determine inventory shrinkage 存货

16、损耗.Slide 6-19The Inventory Subsidiary LedgerAssetLiability+ OE+Revenue-Expense=InventoryCost of good soldSales-+Sep.10300+Sep.53000-Sep.10300Sep.10 500Purchase 100 units, 30$Account PayableAccount Rec.+-+Sep. 53000Sep.10500sales10 units,50$=+Perpetual Inventory MethodIn order to ensure the accuracy

17、of their perpetual records, most businesses take a complete physical count of the merchandise on hand at least oncea year.Slide 6-21Taking a Physical InventoryReasonable amounts of inventory shrinkage are viewed asa normal cost of doing business.Examples includebreakage, spoilage and theft.Slide 6-2

18、2GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditDec.31Cost of Goods Sold2,000Inventory2,000On December 31, Worley Co. counts its inventory.An inventory shortage of $2,000 is discovered.Taking a Physical InventoryAssetLiability+ OE+Revenue-Expense=InventoryCost of good sold-+Sep.10300Dec

19、. 312000+Sep.53000-Sep.10300Dec. 312000Inventory shrinkage=+Perpetual Inventory MethodØ Beginning inventory+ Purchases- Cost of goods sold= Ending inventoryCost of goods availablefor saleØ Net Sales- Cost of good sold= Gross profitØ Exercise 6.4 (p.253)Ø Exercise 6.6 (p.254)Slide

20、 6-24Close Revenue accounts (including Sales) to Income Summary.Close Expense accounts (including Cost of Goods Sold) to Income Summary.Close Income Summary account to Retained Earnings.Close Dividends to Retained Earnings.The closing entries are the same!Slide 6-25No effort is made to keep up-to-da

21、te records of either inventory or cost ofgoods sold.Lets lookat some entries!Slide 6-26Periodic Inventory System定期盘存制Slide 6-27GENERAL JONotice that no entry isURNAmLade to Inventory.DateAccount Titles and ExplanationDebitCreditSept.5Purchases3,000Accounts Payable (Electronic City)3,000Slide 6-28GEN

22、ERAL JOURNALRetailDateAccount Titles and ExplanationDebitCreditSept.10Accounts Receivable (ABC Radios)500Sales500Slide 6-29GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSept.15Accounts Payable (Electronic City)3,000Cash3,000Slide 6-30GENERAL JOURNALDateAccount Titles and ExplanationDeb

23、itCreditSept.22Cash500Accounts Receivable (ABC Radios)500On September 22, Worley Co. received $500 from ABC Radios as payment in full for theirpurchase on September 10.Periodic Inventory SystemAssetLiability+ OE+Revenue-Expense=InventoryPurchaseSales-+Sep.53000+-Sep.10 500Account PayablePurchase 100

24、 units, 30$Account Rec.+-+Sep. 53000Sep.10500sales10 units,50$=+Perpetual Inventory MethodØ The year-end inventory is determined by taking a complete physical count of the merchandise on handØ Beginning inventory+ Purchases- Ending inventory= Cost of goods soldCost of goods availablefor sa

25、leSlide 6-32Calculate Party Supplys cost of goods soldfor 2003.Slide 6-33At December 31, 2003, Party Supply counted the merchandise on hand at $12,000.The accounting records of Party Supply show the following:Inventory, Jan. 1, 2003$ 14,000Purchases (during 2003) 130,000Computing Cost of Goods Sold

26、in a Periodic Inventory SystemCost of Goods Sold can becalculated as follows:Inventory (beginning of the year)$14,000130,000Add:PurchasesCost of goods available for sale144,00012,000Less:Inventory (end of year)Cost of goods sold $ 132,000 Slide 6-34Computing Cost of Goods Sold in a Periodic Inventor

27、y SystemNow, Party Supply must create the Cost of Goods Sold account.Slide 6-35GENERAL JOURNALAccount Titles and ExplanationDebitCreditDateDec.31Cost of Goods Sold144,000Inventory (beginning of year)14,000Purchases130,000Now, Party Supply must record the ending inventory amount.Slide 6-36GENERAL JOU

28、RNALAccount Titles and ExplanationDebitCreditDateDec.31Inventory (end of year)12,000Cost of Goods Sold12,000Creating Cost of Goods Sold in a Periodic Inventory SystemAssetLiability+ OE+Revenue-Expense=InventoryPurchaseSales-+Jan.114000-Dec.3114000Dec.31130000130000Dec.31Purchase in this year12000Acc

29、ount Pay.Cost of Good Sold+130000-+Dec.31Dec.3112000Ending inventoryPerpetual Inventory MethodØ Exercise 6.8 (p.255)Ø Question 9 ( p .252)Slide 6-38Close Revenue accounts (including Sales) to Income Summary.Close Expense accounts (including Cost of Goods Sold) to Income Summary.Close Incom

30、e Summary account to Retained Earnings.Close Dividends to Retained Earnings.The closing entries are the same!Slide 6-39Refer to the exhibit 6-6 on page 236Slide 6-40Perpetual Inventory SystemPeriodic Inventory SystemJos Dress ShopSlide 6-41Large Department StoresComparison of Perpetual and Periodic

31、Inventory SystemsMost businesses use special journals特账 rather than a general journal to种record routine transactions that occur frequently.Slide 6-42GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditModifying an Accounting SystemWhen manufacturers and wholesalers sell their products on acc

32、ount, the credit terms are stated in the invoice.Slide 6-432/10, n/30Read as: “Two ten, net thirty”Slide 6-44Ø Sales discounts in terms of sellerØ Purchase discounts in terms of buyerPurchases are recorded at their net amounts.Purchase discounts（购货折扣） lost are recorded when payment is made

33、 outside the discountNet (price) Method净价法period.Slide 6-46Credit Terms and Cash DiscountsSlide 6-47GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditGENERAL JOURNALDateAccount Titles and ExplanationDebitCreditJuly6Inventory3,920Accounts Payable (Kid's Clothes)3,920$4,000 * 98% = $3,92

34、0Slide 6-48Slide 6-49GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSlide 6-50GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditJuly15Accounts Payable (Kid's Clothes)3,920Cash3,920Slide 6-51GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSlide 6-52GENERAL JOURN

35、ALNonoperating ExpenseDateAccount Titles and ExplanationDebitCreditJuly20Accounts Payable (Kid's Clothes)3,920Purchase Discounts Lost80Cash4,000Now, assume that Play Clothes waited until July 20 to pay the amount due in full toKids Clothes.Prepare the journal entry for Play Clothes.Credit Terms

36、and Cash DiscountsPurchases are recorded at their gross amounts.Gross (price)Method毛额法/总价法Purchase discounts taken are recorded when payment is made inside the discountperiod.Slide 6-54Recording Purchases at Gross Invoice PriceSlide 6-55On July 6, Play Clothes purchased $4,000 of merchandise on cred

37、it with terms of2/10, n/30 from Kids Clothes.Prepare the journal entry for Play Clothes.GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSlide 6-56On July 6, Play Clothes purchased $4,000 of merchandise on credit with terms of2/10, n/30 from Kids Clothes.Prepare the journal entry for Play

38、 Clothes.GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditJuly6Inventory4,000Accounts Payable (Kid's Clothes)4,000Slide 6-57GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSlide 6-58Reduces Cost of Goods SoGldENERAL JOURN$4,000 ´ 98% = $3,920ALDebitCreditDateAccount T

39、itles and ExplanationJuly15 Accounts Payable (Kid's Clothes)4,000Cash3,920Purchase Discounts Taken80Slide 6-59GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditSlide 6-60GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditJuly20Accounts Payable (Kid's Clothes)4,000Cash4,000

40、Slide 6-61GENERAL JOURNALDateAccount Titles and ExplanationDebitCreditGENERAL JOURNALDateAccount Titles and ExplanationDebitCreditAug.5Accounts Payable (Kid's Clothes)490Inventory490$500 ´ 98% = $490Slide 6-62On August 5, Play Clothes returned $500 of unsatisfactory merchandise purchased fr

41、om Kids Clothes on credit terms of 2/10, n/30. The purchasewas originally recorded at net cost.Prepare the journal entry for Play Clothes.Returns of Unsatisfactory MerchandiseSlide 6-63Ø Problem 6.4 on page 258Credit terms and merchandise returns affect the amount of revenue earned bythe seller

42、.Slide 6-65Computer Barn Partial Income StatementFor the Year Ended December 31, 2002RevenueSales$ 912,000Less: Sales returns and allowances$8,000Sales discounts4,00012,000 Net sales$ 900,000 Transactions Relating to SalesSlide 6-66GENERAL JOURNALAccount Titles and ExplanationDebitCreditDateAug.2Acc

43、ounts Receivable (Play Clothes)2,000Sales2,000Slide 6-67GENERAL JOURNALAccount Titles and ExplanationDebitCreditDateAug.2Cost of Goods Sold1,000Inventory1,000On August 5, Play Clothes returned $500 of unsatisfactory merchandise to Kids Clothes from theAugust 2 sale. Kids Clothes cost for this mercha

44、ndise was $250.Because Kids Clothes uses a perpetual inventory system, they must make two entries.Contra-revenueGENERAL JOURNALDateAccount Titles and ExplanationDebitCreditAug.5Sales Returns and Allowances500Accounts Receivable (Play Clothes)500Slide 6-68Slide 6-69On August 5, Play Clothes returned $500 of unsatisfactory merchandise to Kids Clothes from theAugust 2 sale. Kids Clothes cost for this merchandise was $250.Because Kids Clothes uses a perpetual inventory system, they must make two entries.GENERAL JOURNALAccount Titles and ExplanationDebitCr