Worksheet for a Merchandising Business Presented by: Audrey Marshall For Accounting Principles Chapter 15
Jan 15, 2016
Worksheet for a Merchandising Business
Presented by:Audrey Marshall
For
Accounting Principles
Presented by:Audrey Marshall
For
Accounting Principles
Chapter 15 Chapter 15
Chapter OverviewChapter 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
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
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 PeriodsFiscal 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
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 SheetWork 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
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 SheetPreparing a Work Sheet
Heading Trial Balance Adjustments
Reflects changes to assets
Income Statement Shows Revenue and Expenses
Balance Sheet Calculate
Heading Trial Balance Adjustments
Reflects changes to assets
Income Statement Shows Revenue and Expenses
Balance Sheet Calculate
Trial BalanceTrial Balance
Proof of the equality of DR & CR Information obtained from GL List ALL accounts
Proof of the equality of DR & CR Information obtained from GL List ALL accounts
AdjustmentsAdjustments
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
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-SuppliesAdjustments-Supplies
Purchase recorded as a DebitSupplies decrease in value daily
Impractical to record decrease dailyAlways given Supplies on Hand
Balance of Supplies 4931.00
Supplies on hand (value of supplies) 2284.00
Supplies Used 2647.00
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
Purchase recorded as a Debit Insurance decreases in value daily
Impractical to record decrease daily Always given VALUE of Prepaid
insurance
Balance of Prepaid Insurance 1200.00
Value (remaining unused insurance) 1,100.00
Insurance Coverage Used 100.00
Income StatementIncome Statement
Balances of: Revenues Accounts Expense Accounts
Determines: Net Income R>E Net Loss R<E
Balances of: Revenues Accounts Expense Accounts
Determines: Net Income R>E Net Loss R<E
Totals will not equalTotals will not equal
Balance SheetBalance Sheet
Final Step in preparing the WSExtend permanent account balancesAdd net income/lossRe-total
Questions or WYL Quiz?Questions or WYL Quiz?