This document provides an overview of the accounting cycle and financial statements for service and merchandising businesses. It discusses topics like analyzing transactions, preparing journal entries, adjusting and closing entries, and producing financial statements. The accounting cycle involves analyzing transactions, recording them, making adjustments, preparing financial statements, and closing books at the end of each period. Financial statements include the income statement, retained earnings statement, and balance sheet. The document also covers merchandise inventory accounting, periodic inventory systems, and financial statement preparation for merchandising businesses.
This document provides an overview of the accounting cycle and financial statements for service and merchandising businesses. It discusses topics like analyzing transactions, preparing journal entries, adjusting and closing entries, and producing financial statements. The accounting cycle involves analyzing transactions, recording them, making adjustments, preparing financial statements, and closing books at the end of each period. Financial statements include the income statement, retained earnings statement, and balance sheet. The document also covers merchandise inventory accounting, periodic inventory systems, and financial statement preparation for merchandising businesses.
This document provides an overview of the accounting cycle and financial statements for service and merchandising businesses. It discusses topics like analyzing transactions, preparing journal entries, adjusting and closing entries, and producing financial statements. The accounting cycle involves analyzing transactions, recording them, making adjustments, preparing financial statements, and closing books at the end of each period. Financial statements include the income statement, retained earnings statement, and balance sheet. The document also covers merchandise inventory accounting, periodic inventory systems, and financial statement preparation for merchandising businesses.
Chapter 4 Completing the Preparing the Financial Statements from the
Spreadsheet 182 Accounting Cycle 149 Comprehensive Problem 1 208 Flow of Accounting Information 150 Financial Statements 152 Chapter 5 Accounting for Income Statement 152 Merchandising Businesses 211 Integrity, Objectivity, and Ethics in Business: CEO’s Nature of Merchandising Businesses 212 Health? 154 Retained Earnings Statement 154 Business Connection: H&R Block Versus the Home Balance Sheet 155 Depot 213 International Connection: International Merchandising Transactions 214 Differences 156 Purchases Transactions 214 Sales Transactions 218 Closing Entries 156 Journalizing and Posting Closing Entries 158 Integrity, Objectivity, and Ethics in Business: The Post-Closing Trial Balance 159 Case of the Fraudulent Price Tags 222 Freight 222 Accounting Cycle 162 Summary: Recording Merchandise Inventory Illustration of the Accounting Cycle 163 Transactions 225 Step 1. Analyzing and Recording Transactions in Dual Nature of Merchandise Transactions 225 the Journal 164 Chart of Accounts for a Merchandising Business Step 2. Posting Transactions to the Ledger 164 227 Step 3. Preparing an Unadjusted Trial Balance 166 Sales Taxes and Trade Discounts 227 Step 4. Assembling and Analyzing Adjustment Business Connection: Sales Taxes 228 Data 167 Step 5. Preparing an Optional End-of-Period Financial Statements for a Merchandising Spreadsheet 167 Business 228 Step 6. Journalizing and Posting Multiple-Step Income Statement 229 Adjusting Entries 167 Single-Step Income Statement 230 Step 7. Preparing an Adjusted Trial Balance 168 Retained Earnings Statement 231 Step 8. Preparing the Financial Statements 168 Balance Sheet 231 Step 9. Journalizing and Posting Closing The Adjusting and Closing Process 232 Entries 170 Adjusting Entry for Inventory Shrinkage 232 Step 10. Preparing a Post-Closing Closing Entries 233 Trial Balance 170 Financial Analysis and Interpretation: Ratio of Fiscal Year 173 Net Sales to Assets 234 Business Connection: Choosing a Fiscal Year 174 Integrity, Objectivity, and Ethics in Business: Financial Analysis and Interpretation: Working The Cost of Employee Theft 236 Capital and Current Ratio 174 Appendix: The Periodic Inventory System 236 Appendix 1: End-of-Period Spreadsheet Cost of Merchandise Sold Using the Periodic (Work Sheet) 176 Inventory System 236 Step 1. Enter the Title 176 Chart of Accounts Under the Periodic Inventory Step 2. Enter the Unadjusted Trial Balance 176 System 236 Step 3. Enter the Adjustments 176 Recording Merchandise Transactions Under the Step 4. Enter the Adjusted Trial Balance 178 Periodic Inventory System 237 Step 5. Extend the Accounts to the Income Adjusting Process Under the Periodic Inventory Statement and Balance Sheet Columns 179 System 239 Step 6. Total the Income Statement and Balance Financial Statements Under the Periodic Inventory Sheet Columns, Compute the Net System 239 Income or Net Loss, and Complete the Closing Entries Under the Periodic Inventory Spreadsheet 180 System 239