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Chapter 14 Work Sheet for a Merchandising Business.

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Presentation on theme: "Chapter 14 Work Sheet for a Merchandising Business."— Presentation transcript:

1 Chapter 14 Work Sheet for a Merchandising Business

2 Terms that you need to know….. Inventory – simply the amount of goods that we have on our shelves and in our warehouse. Inventory – simply the amount of goods that we have on our shelves and in our warehouse. Worksheet – the financial form that provides us with a way to make sure or ledger is in balance, net income, and helps us prepare our adjustments. Worksheet – the financial form that provides us with a way to make sure or ledger is in balance, net income, and helps us prepare our adjustments.

3 More terms Adjustments – the process in which we bring our accounts up to date. Adjustments – the process in which we bring our accounts up to date. Merchandise Inventory – the amount of goods we have to sell to our customers (Asset Account) Merchandise Inventory – the amount of goods we have to sell to our customers (Asset Account)

4 Steps to completing the worksheet 1. Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet.

5 Omni Imports Worksheet For month Ended December X Account TitleTrial BalanceAdjustments Income StatementBalance Sheet Cash Petty Cash300 Accounts Receivable Merchandise Inventory Supplies - Office6480 Supplies - Store6911 Prepaid Insurance5800 Accounts Payable Employee Income Tax Payable 542 Social Security Tax Payable Sales Tax Payable Unemployment Tax Pay - Fed Unemployment Tax Pay - State Health Insurance Prem Pay 1008 US. Savings Bonds Pay 60 United Way donations Pay 72 Karl Koehn, Capital Karl Koehn, Drawing29100 Michelle Wu, Capital Michelle Wu, Drawing28800 Income Summary Top half of the Worksheet

6 Sales Tax Payable Purchases Advertising Expense6600 Credit Card Fee Expense3385 Insurance Expense Miscellaneous Expense Payroll Taxes Expense9105 Rent Expense21000 Salary Expense89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense3820 Net Income Bottom half of the worksheet

7 Steps to completing the worksheet 1. Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet. 2. Total the columns on the trial balance.

8 Sales Tax Payable Purchases Advertising Expense6600 Credit Card Fee Expense3385 Insurance Expense Miscellaneous Expense Payroll Taxes Expense9105 Rent Expense21000 Salary Expense89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense Net Income

9 Adjustment Supplies-Office Supplies-Office Supplies-store Supplies-store Prepaid Insurance Prepaid Insurance Merchandise Inventory Merchandise Inventory Supplies Expense- office Supplies Expense- office Supplies Expense- Store Supplies Expense- Store Insurance Expense Insurance Expense Income Summary Income Summary

10 Supplies-Office Beg Bal. in ledger $6480 Supplies-Office Ending Bal in Warehouse $4480 Adjustment Credit for $2000 Omni Imports Worksheet For month Ended December X Account TitleTrial BalanceAdjustments Income Statement Balance Sheet Cash Petty Cash300 Accounts Receivable Merchandise Inventory Supplies - Office6480 Supplies - Store6911 Prepaid Insurance5800 Accounts Payable Employee Income Tax Payable 542 $2000 Since we Credit we must debit Somewhere else

11 Insurance Expense Miscellaneous Expense Payroll Taxes Expense9105 Rent Expense21000 Salary Expense89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense $2000 Trial BalanceAdjustments

12 Income Summary Sales Tax Payable Purchases Advertising Expense6600 Credit Card Fee Expense3385 Insurance Expense 3170 Miscellaneous Expense Payroll Taxes Expense9105 Rent Expense21000 Salary Expense89400 Supplies Expense - Office 2000 Supplies Expense - Store 391 Utilities Expense Omni Imports Worksheet For month Ended December X Account TitleTrial BalanceAdjustments Income Statement Balance Sheet Cash Petty Cash300 Accounts Receivable Merchandise Inventory Supplies - Office Supplies - Store Prepaid Insurance Accounts Payable Employee Income Tax Payable 542

13 Steps to completing the worksheet 1. Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet. 2. Total the columns on the trial balance. 3. Make the adjustments 4. Total the adjustments column so that we know they are in balance

14 4. Move all of the information to the appropriate columns 1.Remember that the income summary is the line that we use to help us as a guide. 1. Everything above goes on the balance sheet 2. Everything below goes on the income statement columns

15 Omni Imports Worksheet For month Ended December X Account TitleTrial Balance Adjustment s Income StatementBalance Sheet Cash Petty Cash300 Accounts Recievable Merchandise Inventory Supplies - Office Supplies - Store Prepaid Insurance Accounts Payable Employee Income Tax Payable 542 Social Security Tax Payable Medicare Tax Payable Sales Tax Payable Unemployment Tax Pay - Fed 8.4 Unemployment Tax Pay - State Health Insurance Prem Pay 1008 US. Savings Bonds Pay 60 United Way donations Pay 72 Karl Koehn, Capital Karl Koehn, Drawing29100 Michelle Wu, Capital Michelle Wu, Drawing28800

16 Income Summary Sales Purchases Advertising Expense6600 Credit Card Fee Expense3385 Insurance Expense 3170 Miscellaneous Expense Payroll Taxes Expense9105 Rent Expense21000 Salary Expense89400 Supplies Expense - Office 4730 Supplies Expense - Store 3910 Utilities Expense Net Income

17 4. Move all of the information to the appropriate columns 1.Remember that the income summary is the line that we use to help us as a guide. 1. Everything above goes on the balance sheet 2. Everything below goes on the income statement columns 5. Total the columns and determine net loss or gain.

18 Income Summary Sales Tax Payable Purchases Advertising Expense6600 Credit Card Fee Expense3385 Insurance Expense 3170 Miscellaneous Expense Payroll Taxes Expense9105 Rent Expense21000 Salary Expense89400 Supplies Expense - Office 4730 Supplies Expense - Store 3910 Utilities Expense Net Income Debit Credit


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