Worksheet for a merchandising business
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Worksheet for a Merchandising Business PowerPoint PPT Presentation


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Chapter 15. Worksheet for a Merchandising Business. Presented by: Audrey Marshall For Accounting Principles. Chapter Overview. Financial Information Using a Worksheet for a Merchandising Business Recording Payroll Recording Employer Payroll Taxes

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Worksheet for a Merchandising Business

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Worksheet for a merchandising business

Chapter 15

Worksheet for a Merchandising Business

Presented by:

Audrey Marshall

For

Accounting Principles


Chapter overview

Chapter Overview

  • Financial Information

  • Using a Worksheet for a Merchandising Business

  • Recording Payroll

  • Recording Employer Payroll Taxes

  • Reporting Withholding and Payroll Taxes

  • Paying Withholding and Payroll Taxes


Merchandising business worksheet

Merchandising Business Worksheet

  • Used by management to make decisions about future business operations

  • Shows profit or loss

  • Helps determine need for future changes in business decisions

  • Summarizes information needed to prepare tax reports


Fiscal periods

Fiscal Periods

  • The length of time for which a business summarizes and reports financial information

    • AKA—Accounting Period

    • Begin on any date

      • Usually Begin 1st Day of Month

      • End on LAST day of the month

    • IRS must approve

Accounting Concept: Accounting Period Cycle


Work sheet

Work Sheet

  • Columnar accounting form used to summarize the GL information needed to prepare financial statements.

  • Uses:

    • Summarize GL balances

    • Prove equality of Cr. & Dr.

    • Plan needed changes to update

      GL balances

    • To calculate Net income/loss


Preparing a work sheet

Preparing a Work Sheet

  • Heading

  • Trial Balance

  • Adjustments

    • Reflects changes to assets

  • Income Statement

    • Shows Revenue and Expenses

  • Balance Sheet

    • Calculate


Trial balance

Trial Balance

  • Proof of the equality of DR & CR

  • Information obtained from GL

  • List ALL accounts


Adjustments

Adjustments

  • Definition:

    • Changes recorded on a work sheet to update GL Accounts at the end of the fiscal period.

  • Supplies & Prepaid Insurance

  • Bring Accounts Up-to-Date

  • Accurate Record Assets

    • Value of supplies bought

    • Value of remaining insurance policy


Adjustments supplies

Adjustments-Supplies

  • Purchase recorded as a Debit

  • Supplies decrease in value daily

    • Impractical to record decrease daily

    • Always given Supplies on Hand


Adjustments prepaid ins

Adjustments-Prepaid Ins.

  • Purchase recorded as a Debit

  • Insurance decreases in value daily

    • Impractical to record decrease daily

    • Always given VALUE of Prepaid insurance


Income statement

Balances of:

Revenues Accounts

Expense Accounts

Determines:

Net Income R>E

Net Loss R<E

Totals will not equal

Income Statement


Balance sheet

Balance Sheet

  • Final Step in preparing the WS

  • Extend permanent account balances

  • Add net income/loss

  • Re-total


Questions or wyl quiz

Questions or WYL Quiz?


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