century 21 accounting © 2009 south-western, cengage learning lesson 4-4 responsibility statements...
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 4-4LESSON 4-4
Responsibility Statements for a Merchandising Business
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Chapter 4 ObjectivesChapter 4 ObjectivesFinancial Reporting for a Financial Reporting for a Departmentalized BusinessDepartmentalized Business
After studying Chapter 4, you will be able to:Define accounting terms related to cost accounting and financial reporting for a departmentalized merchandising business.Identify accounting concepts and practices related to cost accounting and financial reporting for a departmentalized merchandising business.Distinguish between direct and indirect expenses.Prepare an interim departmental statement of gross profit.Prepare a work sheet for a departmentalized merchandising business.Prepare financial statements for a departmentalized merchandising business.Analyze financial statements using selected component percentages.Complete end-of-period work for a departmentalized merchandising business.
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LESSON 4-4
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 4-4Lesson 4-4
responsibility statements: financial statements reporting revenue, costs, and direct expenses under a specific department’s control
income statement: a financial statement showing the revenue and expenses for a fiscal period
statement of stockholders’ equity: a financial statement that shows changes in a corporation’s ownership for a fiscal period
capital stock: total shares of ownership in a corporation
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LESSON 4-4
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Lesson 4-4Lesson 4-4
responsibility statements: financial statements reporting revenue, costs, and direct expenses under a specific department’s control
retained earnings: an amount earned by a corporation and not yet distributed to stockholders
dividends: earnings distributed to stockholders balance sheet: a financial statement that reports
assets, liabilities, and owners’ equity on a specific date
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LESSON 4-4
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
1. Determine net sales for department.
2. Determine cost of merchandise sold for department.
3. Calculate gross profit.
4. Record direct expenses of the department.
5. Calculate the departmental margin.
DEPARTMENTAL MARGIN DEPARTMENTAL MARGIN STATEMENTSTATEMENT—AUDIO—AUDIO page 111
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
COMPONENT PERCENTAGES ON COMPONENT PERCENTAGES ON DEPARTMENTAL MARGIN STATEMENTSDEPARTMENTAL MARGIN STATEMENTS
Net SalesDepartmental
MarginComponent Percentage for Departmental Margin
÷ =
$49,222.61 ÷ = 14.3%$344,476.46
Component Percentages20X3 20X2 20X1
Departmental Margin 14.3% 13.4% 13.1%
page 112
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
DEPARTMENTAL MARGIN DEPARTMENTAL MARGIN STATEMENTSTATEMENT—VIDEO—VIDEO page 113
1. Determine net sales for department.
2. Determine cost of merchandise sold for department.
3. Calculate gross profit.
4. Record direct expenses of the department.
5. Calculate the departmental margin.
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
INCOME STATEMENT WITH INCOME STATEMENT WITH DEPARTMENTAL MARGINDEPARTMENTAL MARGIN
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1.Prepare the heading.2-6.Use information from the departmental margin statements.7.Use information from the Income Statement columns of the work sheet.
8.Complete the income statement.
9.Calculate component percentages.
page 114
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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
STATEMENT OF STATEMENT OF STOCKHOLDERS’ EQUITYSTOCKHOLDERS’ EQUITY page 115
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
BALANCE SHEETBALANCE SHEET page 116
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
BALANCE SHEETBALANCE SHEET page 116
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
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LESSON 4-4
DEFINE TERMS REVIEWDEFINE TERMS REVIEWIn QuizletIn Quizlet
responsibility statements income statement statement of stockholders’ equity capital stock retained earnings dividends balance sheet
page 117
Edit this set: Chapter 4 AdvAcc (then SAVE)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Exit Ticket for today:Exit Ticket for today:Audit Your Understanding 4-4Audit Your Understanding 4-4
1. Where does Zytech obtain the information to prepare the direct expenses section of the income statement?
2. How is the component percentage for departmental margin calculated?
3. What two comparisons can be made using the component percentage for departmental margin to determine if a department is performing satisfactorily?
4. Where does Zytech obtain the information to prepare the indirect expenses section of the income statement?
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LESSON 4-4
In a Word Document, SaveAS: Chapter4-4AYUYourNameAnd drop in my Inbox today!
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
Complete the following assignments for Complete the following assignments for Chapter 4-4 todayChapter 4-4 today
Define Terms Review on page 117. Answer Audit Your Understanding questions on page
117. Complete Work Together 4-4 on Aplia – page 117. Complete On Your Own 4-4 on Aplia – page 117. Complete Application Problem 4-4 on Aplia – page
127.
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LESSON 4-4