《财务会计入门英文.pptx》由会员分享，可在线阅读，更多相关《财务会计入门英文.pptx（40页珍藏版）》请在三一文库上搜索。
1、Accounting for Merchandising Operations,Learning Objectives,Describe the nature and types of inventory and how profit is measured in a merchandising business. Distinguish between perpetual and periodic inventory systems. Explain the recording of purchases under a perpetual inventory system. Explain
2、the recording of sales revenues under a perpetual inventory system. Prepare a fully classified Statement of Comprehensive Income. Be able to define, calculate, and analyze certain profitability ratios. Understand the basic process and main features of the goods and services tax (GST). Complete journ
3、al entries to record GST.,LO 1: Inventory Defined,Inventories are current assets held For sale in the ordinary course of business; In the process of production for such sale; or In the form of materials or supplies to be consumed in the production process.,LO 1: Merchandising Operations,Merchandisin
4、g Companies Buy and Sell Goods,Wholesaler,Retailer,Consumer,The primary source of revenues is referred to as sales revenue or sales.,LO 1: Merchandising Operations,Profit Measurement,Cost of goods sold is the total cost of merchandise sold during the period.,Not used in a Service business.,Operating
5、 Profit,Less,Less,=,=,Sales Revenue,Cost of Goods Sold,Gross Profit,Operating Expenses,The operating cycle of a merchandising company ordinarily is longer than that of a service company.,LO 1: Merchandising Operations,Operating Cycle,Flow of Costs,LO 1: Merchandising Operations,LO 2: Inventory Syste
6、ms-,Perpetual System Widespread use due to technological feasibility. Most prominent characteristic: “Merchandise Inventory” and “Cost of Goods Sold” accounts are perpetually updated as transactions occur. Are periodic inventory counts still required? Periodic system Use Most prominent characteristi
7、c: “Merchandise Inventory” account and Cost of Goods Sold are updated at the end of the accounting period, after inventory is counted and costed.,LO 3: Buyers RecordsE5-2, page 232 (adapted),1.On 5 April purchased merchandise from R. Ward this amount is due the government-a current liability. Pay GS
8、T to suppliers for most assets and expenses; this amount may be claimed back from the government-a current receivable. In effect, the tax is levied on the value added by a business at each stage of the production and distribution chain. Because the final consumer cannot claim GST back from the gover
9、nment, the consumer winds up with the bill. GST rates: Australia: 10% New Zealand: 15%,LO 7: The Goods and Services Tax,LO 7: GST Example-using a 10% rate.,LO 8: The NZ GST Math,If the invoice is GST inclusive, then divide by 1.15 to get the non-GST portion of the invoice. Example: Suppose the cost
10、of merchandise, GST exclusive, were $100. Then the GST add-on would be $15 (15% of $100), the total invoice would be $115, and the non-GST portion would be 115/1.15 = 100.,LO 8: Accounting for GST,1. Purchasing merchandise: Retailer purchases a table on credit from manufacturer for $230 (GST inclusi
11、ve).,Merchandise Inventory 200 GST Clearing 30 Accounts Payable 230,LO 8: Accounting for GST,2. Selling inventory: Retailer sells table for cash $575 (GST inclusive). Cost of the table was $200.,Cost of Goods Sold 200 Merchandise Inventory 200,Cash 575 GST Clearing 75 Sales 500,LO 8: Exceptions to t
12、he General Rule,Businesses with turnover less than $60,000 need not be GST registered. Some goods and services are exempt, e.g., financial transactions, including loans, securities transactions, interest, dividends, and bank fees. Some activities are “zero-rated”, e.g., exports of goods and services
13、. GST does not apply: to employees wages. to non-accrual-type AJEs, such as depreciation.,LO 8: GST-Accounting Implications,If business is GST registered, GST is neither an expense nor a revenue. Most assets, liabilities, expenses, and revenues are stated net of GST. Accounts receivable and payable
14、are exceptions. The GST clearing account does not have a normal balance.,LO 8: BE5-3, p. 229, with GST (adapted),LO 8: BE5-3,Hunt Ltd (Seller) (a)Accounts Receivable1,035,000 GST Clearing135,000 Sales900,000 Cost of Goods Sold Merchandise Inventory (b)GST Clearing Sales Returns and Allowances Accoun
15、ts ReceivableMerchandise Inventory Cost of Goods Sold (c)Cash Sales Disc. GST Clearing Accts Receivable 885,500,LO 8: BE5-3,Streisand Ltd (Buyer) (a)Merchandise Inventory GST Clearing Accounts Payable1,035,000 (b)Accounts Payable GST Clearing Merchandise Inventory130,000 (c)Accounts Payable Cash 867,790 Merchandise Inventory GST Clearing,