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Work Sheet for a Merchandising Business
Chapter 14 Work Sheet for a Merchandising Business
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Terms that you need to know…..
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.
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More terms 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)
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Steps to completing the worksheet
Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet.
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For month Ended December 31 200X
Top half of the Worksheet Omni Imports Worksheet For month Ended December X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash Petty Cash 300 Accounts Receivable Merchandise Inventory 270480 Supplies - Office 6480 Supplies - Store 6911 Prepaid Insurance 5800 Accounts Payable Employee Income Tax Payable 542 Social Security Tax Payable 985.4 Sales Tax Payable 227.42 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 136750 Karl Koehn, Drawing 29100 Michelle Wu, Capital Michelle Wu, Drawing 28800 Income Summary
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Bottom half of the worksheet
Sales Tax Payable 423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense Miscellaneous Expense Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense 3820 Net Income
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Steps to completing the worksheet
Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet. Total the columns on the trial balance.
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Sales Tax Payable 423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense Miscellaneous Expense Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense 3820 Net Income
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Adjustment Supplies-Office Supplies-store Prepaid Insurance
Merchandise Inventory Supplies Expense-office Supplies Expense- Store Insurance Expense Income Summary
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Supplies-Office Ending Bal in Warehouse Adjustment Supplies-Office
Beg Bal. in ledger $6480 Credit for $2000 $4480 Omni Imports Worksheet For month Ended December X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash Petty Cash 300 Accounts Receivable Merchandise Inventory 270480 Supplies - Office 6480 Supplies - Store 6911 Prepaid Insurance 5800 Accounts Payable Employee Income Tax Payable 542 Since we Credit we must debit Somewhere else $2000
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Trial Balance Adjustments $2000 Insurance Expense
Miscellaneous Expense Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense 3820 $2000
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For month Ended December 31 200X
Omni Imports Worksheet For month Ended December X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash Petty Cash 300 Accounts Receivable Merchandise Inventory 270480 15840 Supplies - Office 6480 2000 Supplies - Store 6911 391 Prepaid Insurance 5800 3170 Accounts Payable Employee Income Tax Payable 542 Income Summary 15840 Sales Tax Payable 423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense 3170 Miscellaneous Expense Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office 2000 Supplies Expense - Store 391 Utilities Expense 3820
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Steps to completing the worksheet
Take all of the numbers from the general ledger and place them with the accounts that correspond with the accounts on the worksheet. Total the columns on the trial balance. Make the adjustments Total the adjustments column so that we know they are in balance
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Move all of the information to the appropriate columns
Remember that the income summary is the line that we use to help us as a guide. Everything above goes on the balance sheet Everything below goes on the income statement columns
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For month Ended December 31 200X
Omni Imports Worksheet For month Ended December X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash Petty Cash 300 Accounts Recievable Merchandise Inventory 270480 15840 254640 Supplies - Office 6480 4730 1750 Supplies - Store 6911 3910 3034 Prepaid Insurance 5800 3170 2630 Accounts Payable Employee Income Tax Payable 542 Social Security Tax Payable 985.4 Medicare Tax Payable 227.42 Sales Tax Payable Unemployment Tax Pay - Fed 8.4 Unemployment Tax Pay - State 5670 56.7 Health Insurance Prem Pay 1008 US. Savings Bonds Pay 60 United Way donations Pay 72 Karl Koehn, Capital 136750 Karl Koehn, Drawing 29100 Michelle Wu, Capital Michelle Wu, Drawing 28800
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Income Summary 15840 Sales 423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense 3170 Miscellaneous Expense Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office 4730 Supplies Expense - Store 3910 Utilities Expense 3820 27650 Net Income
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Move all of the information to the appropriate columns
Remember that the income summary is the line that we use to help us as a guide. Everything above goes on the balance sheet Everything below goes on the income statement columns Total the columns and determine net loss or gain.
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Debit Credit Debit Credit
Income Summary 15840 Sales Tax Payable 423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense 3170 Miscellaneous Expense Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office 4730 Supplies Expense - Store 3910 Utilities Expense 3820 27650 Net Income 423120 423120
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