ch06 - Account ing for M er chandising Act ivit ies C H A P...

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Accounting for Merchandising Activities C H A P T E R  6
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Learning Objectives 1. Describe merchandising activities and identify business examples. 2. Identify and explain the important components of income for a merchandising company. 3. Identify and explain the inventory asset of a merchandising company. 4. Describe both periodic and perpetual inventory systems.
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Learning Objectives 1. Analyze and record transactions for merchandising purchases using a perpetual system. 2. Analyze and record transactions for sales of merchandise using a perpetual system. 3. Prepare adjustments for a merchandising company.
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Learning Objectives 1. Prepare closing entries for a merchandising company. 2. Define, prepare, and use merchandising income statements. 3. Record and compare merchandising transactions using both periodic and perpetual inventory systems. (Appendix 6A) 4. Explain and record Provincial Sales Tax (PST) and Goods and Services Tax (GST). (Appendix 6B) 12. Assignments: 1.Pr6-4A,pg325-Perp.W/S 2.Pr6-14A,pg330-Periodic W/S 3.Pr6-5A,pg326-F/S Class. 4.Pr6-12A,pg329-Periodic-F/S 5.Pr6-1A,pg324-Perp.Journ.entries 6.Pr6-11A,pg329-Periodic-Journ.ent
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Merchandising Activities Merchandiser : A company that earns net income by buying and selling merchandise. Examples: The Bay, Canadian Tire, The Gap Wholesaler : A company that buys products from manufacturers or other wholesalers and sells them to retailers or other wholesalers. Examples: Provigo, The Oshawa Group
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Computing Net Income Net Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income Net Income Operating Expenses Revenue Merchandiser Service Company Practice Practice Perpetual Periodic
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Products a company owns for the purpose of selling to customers. It is: Often referred to as Merchandise Inventory. Classified as a current asset.
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ch06 - Account ing for M er chandising Act ivit ies C H A P...

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