Chapter 4 Notes - Chapter 4 Pre-Class Notes 1 How merchandising businesses generate revenue 2 What is the difference between production cost and selling

Chapter 4 Notes - Chapter 4 Pre-Class Notes 1 How...

This preview shows page 1 - 3 out of 5 pages.

Chapter 4 Pre-Class Notes 1. How merchandising businesses generate revenue? 2. What is the difference between production cost and selling & administration cost? 3. Beginning Inventory + ___________ = Cost of Goods available for Sale Cost of Goods available for Sale = ________ (Balance Sheet) + ________ (Income Statement) 4. Sales Margin = ________ - __________ 5. ____________ adjusts the inventory account perpetually (continually) throughout the accounting period for each purchase or sale of inventory. Journal entry under perpetual inventory system 6. Event 1: JPS acquired $15,000 by issuing common stock. Event 2: JPS purchased merchandise inventory for $14,000 cash. Event 3a: JPS recognized sales revenue from selling inventory for $12,000. Event 3b: JPS recognized $8,000 of cost of goods sold. Event 4: JPS paid $1,000 cash for selling expenses. Event 5: JPS paid $5,500 cash to purchase land for a place to locate a future store.
Image of page 1
Event 6: JPS borrowed $4,000 cash by issuing a note payable. Event 7: JPS purchased on account merchandise inventory with a list price of $11,000.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 5 pages?

  • Spring '14
  • Revenue, Generally Accepted Accounting Principles, gross margin, JPS, Plant Shop

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture