actg_101-101a_topic_4_processing_transactions_of_a_merchandising_business.pptx
TRANSCRIPT
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ACTG 101/101AACCOUNTINGPRINCIPLES/FUNDAMENTALSOF ACCOUNTING
TEXTBOOK: SIMPLIFIED ACCOUNTING FORBUSINESS (INTERNATIONAL EDITION)
AUTHORS: ZENAIDA VERA-CRUZ ANDMARIBEL VERA-CRUZ
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TOPIC 4:PROCESSING
TRANSACTIONSOF AMERCHANDISING
BUSINESS
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Coverage Jour!"#$#% or r&'or#% !r#ou*
+u*#&** ,r!*!',#o* + !.."#% ,/&ru"&* o0 ou+"& &,r **,&1 2#,/ ,/&u*& o0 *.&'#!" 3our!"*
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NATURE OF MERCHANDISING BUSINESS
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SERICING ANDMERCHANDISING BUSINESSES
COMPAREDSERVICINGBUSINESS
MERCHANDISINGBUSINESS
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NOMINAL ACCOUNTS OFMERCHANDISING BUSINESS
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NOMINAL ACCOUNTS OFMERCHANDISING BUSINESS
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PROPRIETORSHIP ENGAGED INTRADING
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PROPRIETORSHIP ENGAGED INTRADING
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MA$OR BUSINESS ACTIITIES OF AMERCHANDISING FIRMPur'/!*#% A',##,#&*
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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INITIAL $OURNAL ENTRY FOR THETRANSACTION
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INITIAL $OURNAL ENTRY FOR THETRANSACTION
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PURCHASES & ADDITIONAL E'AMPLEPur'/!*& 1&r'/!#*& o !''ou,9
P79 T&r1*: 86=9 8
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COMMON ACCOUNT TITLES USED INPURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USED INPURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USED INPURCHASING ACTIITIESI""u*,r!,#o: A**u1& ,/!, E!*,&r E,&r.r#*& 0ou
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN PURCHASING ACTIITIES
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A: Fr%/, # 69
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SAMPLE PURCHASING ACTIITIES
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SAMPLE PURCHASING ACTIITIES
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SAMPLE PURCHASING ACTIITIES
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SAMPLE PURCHASING ACTIITIES
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SAMPLE PURCHASING ACTIITIES
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MA$OR BUSINESS ACTIITIES OFA MERCHANDISING FIRMS&""#% A',##,#&*
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MA$OR BUSINESS ACTIITIES OF AMERCHANDISING FIRMS&""#% A',##,#&*
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COMMON ACCOUNT TITLES USED IN
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COMMON ACCOUNT TITLES USED INSELLING ACTIITIESI""u*,r!,#oA**u1& ,/!, E!*,&r E,&r.r#*& *o" ,o B#L!# ! 1&r'/!#*& !1ou,#% ,o P67=99#'"u#% ! 1!ru. o0 P=9 o !''ou,9
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COMMON ACCOUNT TITLES USED INSELLING ACTIITIESFr%/, Ou,
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COMMON ACCOUNT TITLESUSED IN SELLING ACTIITIES
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COMMON ACCOUNT TITLES USED INSELLING ACTIITIES
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COMMON ACCOUNT TITLES USEDIN SELLING ACTIITIESS!"&* A""o2!'&*
U*& ,o &*'r#+& r&u',#o o *!"&*u& ,o r&!*o* *#1#"!r ,o *!"&* r&,ur*Ho2&&r9 ,/&r& #* o !',u!" ./*#'!"r&,ur o0 ,/& %oo* ,o ,/& *&""&r +&'!u*&,/& +u&r &'#&* ,o &&. ,/&1 !* ,/&*&""&r !""o2* ! .r#'& r&u',#o 0or ,/&
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COMMON ACCOUNT TITLES USED
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COMMON ACCOUNT TITLES USEDIN SELLING ACTIITIES
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COMMON ACCOUNT TITLES USED INSELLING ACTIITIES
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COMMON ACCOUNT TITLES USED INSELLING ACTIITIES
I""u*,r!,#o
A**u1& ,/!, B# L!# .!# /#*!''ou, 2#,/# = !* 2/#'/ &,#,"&*/#1 0or ! 8 #*'ou, Jour!" &,r #*
!* 0o""o2*:
COMMON ACCOUNT TITLES
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COMMON ACCOUNT TITLESUSED IN SELLING ACTIITIES
Co1.u,!,#o o0 '!*/ 'o""&',#o:
S!"&* .&r Io#'& P 67=9
L&**: S!"&* r&,ur* P ?9
S!"&* !""o2!'&* 9 6=9
B!"!'& +&0or& *!"&* #*'ou,* P669
L&**: S!"&* #*'ou,* (669 8)
898C!*/ 'o""&',#o P 6?9
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COMMON ACCOUNT TITLESUSED IN SELLING ACTIITIES
Co1.u,!,#o o0 N&, S!"&*S!"&* P 67=9
L&**: S!"&* r&,ur* P ?9
S!"&* !""o2!'&* 9 S!"&* #*'ou, 898 6>98
N&, S!"&* P 6?9
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SAMPLE SELLING ACTIITIESSo1& o0 ,/& *!"&* ,r!*!',#o* o0
L&o#"! G&&r!"&* Co1.! 2/o*& 'r&#,,&r1* !r& 769 8 0o""o2*
Ju& 6 C!*/ *!"&*9 P6>9
SAMPLE SELLING ACTIITIES
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SAMPLE SELLING ACTIITIES
Ju& ; S!"&* o !''ou,9 P?=9
SAMPLE SELLING ACTIITIES
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SAMPLE SELLING ACTIITIES
Ju& < R&'& r&,ur& 1&r'/!#*&
*o" o !''ou,9 P9
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SAMPLE PURCHASING ACTIITIES
Ju& 6 Co""&',& ,/& !1ou, u& 0ro1
'r&#, *!"&*
TRADE DISCOUNT S CASH DISCOUNT
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TRADE DISCOUNT S CASH DISCOUNT
T2o K#* o0 D#*'ou,
Tr!& D#*'ou,M!u0!',ur&r* ! 2/o"&*!"&r* o0,& o4&r ! ,r!&#*'ou, ,o ,/& r&,!#"&r* ,o !,,r!', ,/&1 ,o +u # +#%@u!,#, So1&,#1&* '!""& @u!,#, #*'ou,
A1ou, &u',& 0ro1 ,/& *u.."#&r* .r#'& "#*, or.r#'& '!,!"o%u& or *u%%&*,& r&,!#" .r#$& ,o !rr#& !,,/& #o#'& .r#'& ('o*, ,o ,/& +u&r)
N&&r 3our!"#$&
E!1."&* o0 '!,!"o%u& .r#$&* 2#,/ ,r!& #*'ou,*Pro+,-.O.o L2. Pr-e Ter32
I.e32 .o P,r-a2e
6 P69 89 8 = ,o 6 #,&1*
7 P69 89 69 8 Mor& ,/! 6 ,o 7#,&1*
8 P69 89 69 76=98 Mor& ,/! 7 #,&1*
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TRADE DISCOUNT S CASH DISCOUNT
I""u*,r!,#o o0 Tr!& D#*'ou,
A**u1#% ,/!, Bu*/ E,&r.r#*& *o"1&r'/!#*& ,o B# Co1.! !, ! "#*, .r#'& o0
P69 ,r!& #*'ou, 7=9 6 769 8Co1.u,!,#o o0 Io#'& Pr#'& 2ou" +& !*
0o""o2*:L#*, Pr#'& P 69
L&**: F#r*, Tr!& D#*'ou, !, 7=
7=9B!"!'& &, o0 5r*, #*'ou, P
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TRADE DISCOUNT S CASH DISCOUNTI""u*,r!,#o o0 Tr!& D#*'ou,
•
Boo* o0 Bu*/ E,&r.r#*& (*&""&r)
Boo* o0 B# Co1.! (+u&r)
TRADE DISCOUNT S CASH DISCOUNT
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TRADE DISCOUNT S CASH DISCOUNT
T2o K#* o0 D#*'ou,
C!*/ D#*'ou, T/#* #*'ou, #* o4&r& ,o &'our!%&.ro1., .!1&,
I0 !!#"&9 ,/#* #* &u',& 0ro1 ,/&!''ou,* r&'!+"& o0 ,/& *&""&r ! ,/&!''ou,* .!!+"& o0 ,/& +u&r
C!*/ D#*'ou, o0 S&""&r S!"&* D#*'ou,
C!*/ D#*'ou, o0 Bu&r Pur'/!*& D#*'ou, T/& #*'ou, #* 3our!"#$&
TRADE DISCOUNT S CASH DISCOUNT
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TRADE DISCOUNT S CASH DISCOUNT
T2o K#* o0 D#*'ou,
I""u*,r!,#oB!*& o ,/& #""u*,r!,#o !+o&9!**u1& ,/!, B# Co1.! .!# 2#,/#
6 !* Co1.u,!,#o o0 !',u!" '!*/.!1&, ,o ,/& Bu*/ E,&r.r#*& 2ou"+&:
Io#'& Pr#'& P ?
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TRADE DISCOUNT S CASH DISCOUNTI""u*,r!,#o o0 C!*/ D#*'ou,
• Boo* o0 B# Co1.! (+u&r)
Boo* o0 Bu*/ E,&r.r#*& (S&""&r)
TRADE DISCOUNT S CASH DISCOUNT
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TRADE DISCOUNT S CASH DISCOUNT
C!*/ D#*'ou,* No, T!&
I, #* 1!!%&1&,* r&*.o*#+#"#, ,o ,!&!!,!%& o0 ! '!*/ #*'ou, ,o &1."o0ur,/&r .ro5,!+#"#,
Pur'/!*&r 2/o ,!&* !!,!%& o0 ! 7
'!*/ #*'ou, 0or .!1&, #* &4&',#&"&!r#% ! #,&r&*, r!,& o0 8?= .&r !u19'o1.u,& !* 0o""o2*:
C!*/ #*'ou, r!,& 7D##& + !* u*& o0 0u* o&r u1+&r
o0 !* # ! &!r 78?=
E4&',#& &!r#% r!,& .&r !u1 0or
INENTORY ACCOUNTING SYSTEMS
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INENTORY ACCOUNTING SYSTEMSD#4&r&, 2!* ,o r&'or !1ou, o0#&,or o /! ! ,/& 'o*, o0#&,or *o":P&r#o#' I&,or S*,&1
P&r.&,u!" I&,or S*,&1
P&r#o#' I&,or S*,&1Co1.! o&* o, 1!#,!# ! 'o,#uou*r&'or o0 ,/& ./*#'!" @u!,#,#&* (or 'o*,*) o0
#&,or o /!A"" #&,or !'@u#r& ur#% ! !''ou,#%.&r#o #* r&'or& + &+#,#% ,/&.ur'/!*&* !''ou,9 o, ,/& #&,or
!''ou,
INENTORY ACCOUNTING SYSTEMS
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INENTORY ACCOUNTING SYSTEMSP&r#o#' I&,or S*,&1u!,#, ! !1ou, o0 &#% #&,or #*&,&r1#& + 'ou',#% ! ./*#'!" 'ou, !,,/& & o0 ,/& .&r#o (/&'&9 ,/& ,&r1.&r#o#')
E#% #&,or #* &u',& 0ro1 ,/& ,o,!"'o*, o0 %oo !!#"!+"& 0or *!"& ur#% ,/&.&r#o ,o !rr#& !, Co*, o0 Goo* So"
Co*, o0 Goo* So" #* ,/& r&*#u!" !1ou,
,/!, #* &.&&, o ,/& !1ou, o0 ,/&&#% #&,or
U*& 0or r&"!,#&" "o2 !"u& #&,or #,&1*
INENTORY ACCOUNTING SYSTEMS
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INENTORY ACCOUNTING SYSTEMSP&r.&,u!" I&,or S*,&1
M!#,!#* ! 'o,#uou* r&'or o0 ,/& '/!%&*o0 ,/& ./*#'!" @u!,#,#&* # #,* #&,or
E!'/ .rou', /!* #,* o2 *u+*##!r "&%&r #2/#'/ ,/& #&,or u#,* ! 'o*, +!"!'&*
!r& 1!#,!#&M&r'/!#*& I&,or9 r!,/&r ,/!.ur'/!*&*9 #* &+#,& 2/& ,/& 1&r'/!#*& #*!'@u#r&
/& ,/&r& #* ! *!"&9 ,/& Co*, o0 Goo* So"#* &+#,& ! ,/& #&,or !''ou, #*'r&#,& &@u#!"&, ,o ,/& 'o*, o0 1&r'/!#*&
*o"
INENTORY ACCOUNTING SYSTEMS
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INENTORY ACCOUNTING SYSTEMSP&r.&,u!" I&,or S*,&1
Co*, o0 Goo* So" !''ou, #* &u',& 0ro1,/& ,o,!" #&,or !''ou, ,o &,&r1#& ,/&&#% #&,or
No ./*#'!" 'ou, r&@u#r& ,o &,&r1#& ,/&
&#% +!"!'& +u, !"" #&,or #,&1* */ou"+& 'ou,& !, "&!*, o'& ! &!r ,o &r#0 ,/&.&r.&,u!" #&,or +!"!'&
Co*," +u, 0!'#"#,!,&* +&,,&r #&,or
."!#% ! 'o,ro" 0or #, .ro#&* #0or1!,#oo0 #&,or o /! !,#1&
COMPARATIE ENTRIES & PERIODIC
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AND PERPETUAL SYSTEMSA**u1& ,/!, D#.o"o% Co1.! .ro#& ,/&
0o""o2#% *u11!r o0 #&,or ,r!*!',#o*0or ,/& &!r 7:
!) B&%##% #&,or: 69 u#,* !, P= .&r
u#,+) Pur'/!*&* o !''ou,: 79 u#,* !, P=
.&r u#,
') Fr%/, o .ur'/!*&9 P79
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&) U#,* *o": 796 !, P6 &!'/
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COMPARATIE ENTRIES PERIODIC AND
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COMPARATIE ENTRIES & PERIODIC ANDPERPETUAL SYSTEMS & $o,ra5 E.re2
+)Pur'/!*&* o !''ou,: 79 u#,* !, P=.&r u#,
') Fr%/, o .ur'/!*&9 P79
COMPARATIE ENTRIES PERIODIC AND
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) Pur'/!*& r&,ur*9 7 u#,* P=
COMPARATIE ENTRIES & PERIODIC ANDPERPETUAL SYSTEMS & $o,ra5 E.re2
&) U#,* *o": 796 !, P6 &!'/ u#,
COMPARATIE ENTRIES PERIODIC AND
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COMPARATIE ENTRIES & PERIODIC ANDPERPETUAL SYSTEMS & $o,ra5 E.re2
0) S!"&* r&,ur9 P69 (6 u#,* P6)
COMPARATIE ENTRIES & PERIODIC AND
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COMPARATIE ENTRIES PERIODIC ANDPERPETUAL SYSTEMS & $o,ra5 E.re2%) Nu1+&r o0 u#,* .&r 'ou, (& o0 &!r):
> u#,*
I&,or */or, or o&r !''ou, #* ,/& !''ou,
,/!, !+*or+* #&,or */or,!%& or o&r!%&r&*u",#% 0ro1 */r#!%&9 +r&!!%&9 */o."#0,#%9#'orr&', r&'or#%9 &,'
E&,u!"" '"o*& ,o ,/& Co*, o0 Goo* So"!''ou,
COMPARATIE ENTRIES PERIODIC AND
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COMPARATIE ENTRIES & PERIODIC ANDPERPETUAL SYSTEMS & $o,ra5 E.re2Co1.u,!,#o o0 */or,!%&:
B&%##% I&,or P =9
Pur'/!*&* 69
Fr%/, # 79
S!"&* r&,ur* = To,!" P 6=79=
L&**: Co*, o0 S!"&* P 6=9
Pur'/!*& r&,ur* 69 6?9
M&r'/!#*& .&r r&'or (.&r.&,u!") P ;?9=
L&**: M&r'/!#*& .&r ./*#'!" 'ou, ;9
S/or,!%& 1&r'/!#*& P ?9=