Work Sheet for a Merchandising Business Chapter 14 Work Sheet for a Merchandising Business

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.

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)

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.

For month Ended December 31 200X Top half of the Worksheet Omni Imports Worksheet For month Ended December 31 200X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash 29080.28   Petty Cash 300 Accounts Receivable 11198.4 Merchandise Inventory 270480 Supplies - Office 6480 Supplies - Store 6911 Prepaid Insurance 5800 Accounts Payable 12542.38 Employee Income Tax Payable 542 Social Security Tax Payable 985.4 Sales Tax Payable 227.42 Unemployment Tax Pay - Fed 2112.05 Unemployment Tax Pay - State 8.4056.70 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 136552.5 Michelle Wu, Drawing 28800 Income Summary

Bottom half of the worksheet Sales Tax Payable   423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense Miscellaneous Expense 2584.15 Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense 3820 Net Income

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.

Sales Tax Payable   423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense Miscellaneous Expense 2584.15 Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense 3820 714003.8 714036.8 Net Income

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

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 31 200X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash 29080.28   Petty Cash 300 Accounts Receivable 11198.4 Merchandise Inventory 270480 Supplies - Office 6480 Supplies - Store 6911 Prepaid Insurance 5800 Accounts Payable 12542.38 Employee Income Tax Payable 542 Since we Credit we must debit Somewhere else $2000

Trial Balance Adjustments $2000 Insurance Expense   Miscellaneous Expense 2584.15 Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office Supplies Expense - Store Utilities Expense 3820 714003.8 714036.8 $2000

For month Ended December 31 200X Omni Imports Worksheet For month Ended December 31 200X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash 29080.28   Petty Cash 300 Accounts Receivable 11198.4 Merchandise Inventory 270480  15840 Supplies - Office 6480 2000 Supplies - Store 6911 391 Prepaid Insurance 5800 3170  Accounts Payable 12542.38 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 2584.15 Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office  2000 Supplies Expense - Store  391 Utilities Expense 3820 714003.8 714036.8

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

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

For month Ended December 31 200X Omni Imports Worksheet For month Ended December 31 200X Account Title Trial Balance Adjustments Income Statement Balance Sheet Cash 29080.28   Petty Cash 300 Accounts Recievable 11198.4 Merchandise Inventory 270480 15840 254640 Supplies - Office 6480 4730 1750 Supplies - Store 6911 3910 3034 Prepaid Insurance 5800 3170 2630 Accounts Payable 12542.38 Employee Income Tax Payable 542 Social Security Tax Payable 985.4 Medicare Tax Payable 227.42 Sales Tax Payable 2112.05 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 136552.5 Michelle Wu, Drawing 28800

Income Summary   15840 Sales 423120 Purchases 189960 Advertising Expense 6600 Credit Card Fee Expense 3385 Insurance Expense 3170 Miscellaneous Expense 2584.15 Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office 4730 Supplies Expense - Store 3910 Utilities Expense 3820 714003.8 714036.8 27650 353504.2 360532.7 290916.8 Net Income

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.

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 2584.15 Payroll Taxes Expense 9105 Rent Expense 21000 Salary Expense 89400 Supplies Expense - Office 4730 Supplies Expense - Store 3910 Utilities Expense 3820 714003.8 714036.8 27650 353504.2 360532.7 290916.8 Net Income 69615.85 69615.85 423120 423120 360532.68 360532.68