1. Partnerships A business in which two or more persons combine their skills and assets and are the owners. Each member of the partnership is called a partner

2. Omni Import Merchandising Business A business that purchases and sells goods. Retail Merchandising Business A business that purchases and sells goods to the final consumer. Wholesale Merchandising Business A business that buys and sells goods to retailers. Merchandise The goods that are purchase by the business that will be sold. Omni Import is a Retail Merchandising Business that is organized as a partnership and purchases and sells novelty gift items.

3. EXPANDED JOURNAL Lesson 10-1, page 229 Omni has many non-cash and other frequent transactions. Therefore, they have added a number of special columns to help save time, space, and to create efficiency.

4. Purchasing Merchandise Cost of Merchandise The amount of money that a business pays for its goods to sell. Markup The amount added to the cost of merchandise that creates the selling price. (To make a profit, the selling price must be greater than its cost) Vendor A business from which assets or other supplies for the business are purchased. Purchases are a cost account and reduces capital which creates a normal debit balance.

5. PURCHASING MERCHANDISE FOR CASH November 1. Purchased merchandise for cash, $575.00 Check No. 290. 1.Which accounts are affected? Purchases Cash 4.How is each amount entered in the accounts? Costs increase on the debit side. Assets decrease on the credit side. 3.How is each classification changed? Costs are increased. Assets are decreased. 2.How is each account classified? Purchases is a cost account. Cash is an asset account. Cash Purchases Debit Normal Balance Debit Normal Balance  575.00  Lesson 10-1, page 231

6. 2.Place a check mark in the Account Title column to show that no account title is needed. PURCHASING MERCHANDISE FOR CASH 5 1 3 4 2 3.Write the check number. 1. Write the date. 4.Place a check mark in the Post. Ref. column to show that amounts are not to be posted individually. 5. Write the debit amount. 6. Write the credit amount. 6 Lesson 10-1, page 231