财务会计入门英文.pptx

AccountingforMerchandisingOperations LearningObjectives Describethenatureandtypesofinventoryandhowprofitismeasuredinamerchandisingbusiness Distinguishbetweenperpetualandperiodicinventorysystems Explaintherecordingofpurchasesunderaperpetualinventorysystem Explaintherecordingofsalesrevenuesunderaperpetualinventorysystem PrepareafullyclassifiedStatementofComprehensiveIncome Beabletodefine calculate andanalyzecertainprofitabilityratios Understandthebasicprocessandmainfeaturesofthegoodsandservicestax GST CompletejournalentriestorecordGST LO1 InventoryDefined InventoriesarecurrentassetsheldForsaleintheordinarycourseofbusiness Intheprocessofproductionforsuchsale orIntheformofmaterialsorsuppliestobeconsumedintheproductionprocess LO1 MerchandisingOperations MerchandisingCompaniesBuyandSellGoods Wholesaler Retailer Consumer Theprimarysourceofrevenuesisreferredtoassalesrevenueorsales LO1 MerchandisingOperations ProfitMeasurement Costofgoodssoldisthetotalcostofmerchandisesoldduringtheperiod NotusedinaServicebusiness OperatingProfit Less Less SalesRevenue CostofGoodsSold GrossProfit OperatingExpenses Theoperatingcycleofamerchandisingcompanyordinarilyislongerthanthatofaservicecompany LO1 MerchandisingOperations OperatingCycle FlowofCosts LO1 MerchandisingOperations LO2 InventorySystems PerpetualSystemWidespreaduseduetotechnologicalfeasibility Mostprominentcharacteristic MerchandiseInventory and CostofGoodsSold accountsareperpetuallyupdatedastransactionsoccur Areperiodicinventorycountsstillrequired PeriodicsystemUse Mostprominentcharacteristic MerchandiseInventory accountandCostofGoodsSoldareupdatedattheendoftheaccountingperiod afterinventoryiscountedandcosted LO3 Buyer sRecords E5 2 page232 adapted 1 On5AprilpurchasedmerchandisefromR Ward Co for 18 000 terms2 7 n 30 2 On6AprilpaidfreightcoststoFreightMastersof 900onmerchandisepurchasedfromR Ward Co 3 On7Aprilpurchasedequipmentonaccountfor 26 000 4 On8AprilreturneddamagedmerchandisetoR Ward Co andwasgranteda 3 000credit 5 On11AprilpaidtheamountduetoR Ward Co Required a Preparethejournalentriestorecordthetransactionslistedaboveintherecordsofthebuyer b AssumethatthebuyerpaidthebalanceduetoR Ward Co on4Mayinsteadof11April Preparethejournalentrytorecordthispayment LO3 Buyer sRecords InventoryPurchases 1 On5AprilpurchasedmerchandisefromR Ward Co for 18 000 terms2 7 n 30 5April Illustration5 6 SellerplacesgoodsFreeOnBoardthecarrier andbuyerpaysfreightcosts SellerplacesgoodsFreeOnBoardtothebuyer splaceofbusiness andsellerpaysfreightcosts FreightCosts TermsofSale Thesetermsalsodeterminelegallywhenownershiptothegoodspasses LO3 FreightCosts LO3 Buyer sRecords FreightCosts Ifbuyerpays freightispartoftheinventorycost 2 On6AprilpaidfreightcoststoFreightMastersof 900onmerchandisepurchasedfromR Ward Co April6 LO3 Buyer sRecords InventoryorEquipment 3 On7Aprilpurchasedequipmentonaccountfor 26 000 7April LO3 Buyer sRecords PurchasesReturnsandAllowances PurchasereturnsPurchaseallowances4 On8Aprilreturned 3 000ofdamagedmerchandisetoR Ward Co forcredit 8April LO3 Buyer sRecords PurchaseDiscounts Settlement purchase discounts5 On11AprilpaidtheamountduetoR Ward Co 11April LO3 Buyer sRecords PurchaseDiscounts Andifthebuyerpaystoolate b AssumethatthebuyerpaidthebalanceduetoR Ward Co on4Mayinsteadof11April Preparethejournalentrytorecordthispayment 4May LO3 Buyer sRecords CostofMerchandiseInventory Thecostofinventoryincludespurchasecosts costsofconversion andothercostsincurredinbringingtheinventoriestotheirpresentlocationandcondition Includesfreightandinsuranceduringshipment Includesnon refundabletaxes Includesin housealterationspriortosale Deductionsfromcost allowancesanddiscounts LO4 Seller sRecords E5 5 page232 adapted ThefollowingtransactionsareforSailingBoatsLtd 1 On7DecemberSailingBoatsLtdsold 720 000ofmerchandisetoShipsAhoyLtd terms2 7 n 30 Thecostoftheinventorysoldwas 480 000 2 On8DecemberShipsAhoyLtdwasgrantedanallowanceof 30 000formerchandisepurchasedon7December 3 On13DecemberSailingBoatsLtdreceivedthebalanceduefromShipsAhoyLtd Required a PreparethejournalentriestorecordthesetransactionsintherecordsofSailingBoatsLtd b AssumethatSailingBoatsLtdreceivedthebalanceduefromShipsAhoyLtdon2Januaryofthefollowingyearinsteadof13December Preparethejournalentrytorecordthereceiptofpaymenton2January LO4 Seller sRecords Undertheperpetualsystem selleralwaysmakestwoentries Torecordthesaleofgoods Torecordthecostofgoodssold 1 On7DecemberSailingBoatsLtdsold 720 000ofmerchandisetoShipsAhoyLtd terms2 7 n 30 Thecostoftheinventorysoldwas 480 000 7Dec LO4 Seller sRecords SalesReturnsandAllowances Buyerreturnsgoodsorasksforanallowance Ifgoodsarereturned twoentriesarerequired Toreducetherevenuerecordedearlier Torecordthereturnedasset Ifgoodsarenotreturnedandthesellergrantsanallowance onlythefirstentryisrequired LO4 Seller sRecords SalesReturnsandAllowances On8December ShipsAhoyLtdwasgrantedanallowanceof 30 000formerchandisepurchasedon7December 8Dec LO4 Seller sRecords SalesReturnsandAllowances Nowsupposeinsteadthetransactionhadread On8DecemberShipsAhoyLtdreturnedhalfofthemerchandisepurchasedon7December 8Dec LO4 Seller sRecords SalesDiscounts 3 On13DecemberSailingBoatsLtdreceivedthebalanceduefromShipsAhoyLtd Ignorethepreviousslideandassumea 30 000allowancehadbeengranted 13Dec LO4 Seller sRecords b AssumethatSailingBoatsLtdreceivedthebalanceduefromShipsAhoyLtdon2Januaryofthefollowingyearinsteadof13December Preparethejournalentrytorecordthereceiptofpaymenton2January 2Jan LO4 Seller sRecords FreightCosts Freightcostsincurredbytheseller anoperatingexpense Example Sellerpaidfreightchargesof 150forgoodssold May5 LO5 PrepareaStatementofComprehensiveIncome E5 9 a p 233 adapted LO5 E5 9 adapted LO5 E5 9 adapted LO6 EvaluatingProfitability 1 GrossProfitratio GrossprofitNetsalesWheregrossprofitisnetsales COGS andnetsalesarerevenuefromsalesofmerchandiselesssalesR Aandsalesdiscounts 2 OperatingExpenseratio OperatingexpensesNetsalesOperatingexpenses excludesCOGS financingexpenses losses andincometaxexpense 3 ProfitMarginratio ProfitNetsalesProfit profitaftertax 4 ReturnonAssets EBITAverageassetsWhereEBITisprofitbeforeinterestandtaxes ROAmeasuresoperatingperformanceindependentofstakeholderclaims LO7 OverviewoftheGSTProcess GSTisadomesticconsumption value addedtax Ingeneral mostbusinessesCollectGSTfromcustomerswhentheyselltheirproducts thisamountisduethegovernment acurrentliability PayGSTtosuppliersformostassetsandexpenses thisamountmaybeclaimedbackfromthegovernment acurrentreceivable Ineffect thetaxisleviedonthevalueaddedbyabusinessateachstageoftheproductionanddistributionchain BecausethefinalconsumercannotclaimGSTbackfromthegovernment theconsumerwindsupwiththebill GSTrates Australia 10 NewZealand 15 LO7 TheGoodsandServicesTax LO7 GSTExample usinga10 rate LO8 TheNZGSTMath IftheinvoiceisGSTinclusive thendivideby1 15togetthenon GSTportionoftheinvoice Example Supposethecostofmerchandise GSTexclusive were 100 ThentheGSTadd onwouldbe 15 15 of 100 thetotalinvoicewouldbe 115 andthenon GSTportionwouldbe115 1 15 100 LO8 AccountingforGST 1 Purchasingmerchandise Retailerpurchasesatableoncreditfrommanufacturerfor 230 GSTinclusive MerchandiseInventory200GSTClearing30AccountsPayable230 LO8 AccountingforGST 2 Sellinginventory Retailersellstableforcash 575 GSTinclusive Costofthetablewas 200 CostofGoodsSold200MerchandiseInventory200 Cash575GSTClearing75Sales500 LO8 ExceptionstotheGeneralRule Businesseswithturnoverlessthan 60 000neednotbeGSTregistered Somegoodsandservicesareexempt e g financialtransactions includingloans securitiestransactions interest dividends andbankfees Someactivitiesare zero rate