Chapter 14 Chapter 14

Work Sheet for a Work Sheet for a Merchandising BusinessMerchandising Business

Terms that you need Terms that you need to know…..to know….. Inventory – simply the amount of Inventory – simply the amount of

goods that we have on our goods that we have on our shelves and in our warehouse.shelves and in our warehouse.

Worksheet – the financial form Worksheet – the financial form that provides us with a way to that provides us with a way to make sure or ledger is in balance, make sure or ledger is in balance, net income, and helps us prepare net income, and helps us prepare our adjustments.our adjustments.

More termsMore terms

Adjustments – the process in Adjustments – the process in which we bring our accounts up which we bring our accounts up to date. to date.

Merchandise Inventory – the Merchandise Inventory – the amount of goods we have to sell amount of goods we have to sell to our customers (Asset Account)to our customers (Asset Account)

Steps to completing Steps to completing the worksheetthe worksheet

1.1. Take all of the numbers from the Take all of the numbers from the general ledger and place them general ledger and place them with the accounts that with the accounts that correspond with the accounts on correspond with the accounts on the worksheet.the worksheet.

Omni Imports

Worksheet

For month Ended December 31 200X

Account Title Trial Balance Adjustments Income Statement Balance Sheet

Cash 29080.28              

Petty Cash 300              

Accounts Receivable 11198.4              

Merchandise Inventory 270480              

Supplies - Office 6480              

Supplies - Store 6911              

Prepaid Insurance 5800              

Accounts Payable   12542.38            

Employee Income Tax Payable   542            

Social Security Tax Payable   985.4            

Sales Tax Payable   227.42            

Unemployment Tax Pay - Fed   2112.05            

Unemployment Tax Pay - State   8.4056.70            

Health Insurance Prem Pay   1008            

US. Savings Bonds Pay   60            

United Way donations Pay   72            

Karl Koehn, Capital   136750            

Karl Koehn, Drawing 29100              

Michelle Wu, Capital   136552.5            

Michelle Wu, Drawing 28800              

Income Summary                

Top half of the Worksheet

Sales Tax Payable   423120            

Purchases 189960              

Advertising Expense 6600              

Credit Card Fee Expense 3385              

Insurance Expense                

Miscellaneous Expense 2584.15              

Payroll Taxes Expense 9105              

Rent Expense 21000              

Salary Expense 89400              

Supplies Expense - Office                

Supplies Expense - Store                

Utilities Expense 3820              

                 

Net Income                

                 

                 

Bottom half of the worksheet

Steps to completing Steps to completing the worksheetthe worksheet

1.1. Take all of the numbers from the Take all of the numbers from the general ledger and place them general ledger and place them with the accounts that with the accounts that correspond with the accounts on correspond with the accounts on the worksheet.the worksheet.

2.2. Total the columns on the trial Total the columns on the trial balance.balance.

Sales Tax Payable   423120

Purchases 189960  

Advertising Expense 6600  

Credit Card Fee Expense 3385  

Insurance Expense    

Miscellaneous Expense 2584.15  

Payroll Taxes Expense 9105  

Rent Expense 21000  

Salary Expense 89400  

Supplies Expense - Office    

Supplies Expense - Store    

Utilities Expense 3820  

  714003.8 714036.8

Net Income    

AdjustmentAdjustment

Supplies-OfficeSupplies-Office

Supplies-storeSupplies-store

Prepaid InsurancePrepaid Insurance

Merchandise Merchandise InventoryInventory

Supplies Supplies Expense-office Expense-office

Supplies Supplies Expense- StoreExpense- Store

Insurance Insurance ExpenseExpense

Income SummaryIncome Summary

Supplies-OfficeBeg Bal. in ledger

$6480

Supplies-OfficeEnding Bal in Warehouse$4480

Adjustment

Credit for $2000

Omni Imports

Worksheet

For month Ended December 31 200X

Account Title Trial Balance AdjustmentsIncome

StatementBalance Sheet

Cash 29080.28              

Petty Cash 300              

Accounts Receivable 11198.4              

Merchandise Inventory 270480              

Supplies - Office 6480              

Supplies - Store 6911              

Prepaid Insurance 5800              

Accounts Payable   12542.38            

Employee Income Tax Payable   542            

$2000

Since we Credit we must debit Somewhere else

Insurance Expense              

Miscellaneous Expense 2584.15            

Payroll Taxes Expense 9105            

Rent Expense 21000            

Salary Expense 89400            

Supplies Expense - Office              

Supplies Expense - Store              

Utilities Expense 3820            

  714003.8 714036.8          

$2000

Trial Balance Adjustments

Income Summary    15840    

Sales Tax Payable   423120    

Purchases 189960      

Advertising Expense 6600      

Credit Card Fee Expense 3385      

Insurance Expense    3170    

Miscellaneous Expense 2584.15      

Payroll Taxes Expense 9105      

Rent Expense 21000      

Salary Expense 89400      

Supplies Expense - Office    2000    

Supplies Expense - Store    391    

Utilities Expense 3820      

  714003.8 714036.8    

Omni Imports

Worksheet

For month Ended December 31 200X

Account Title Trial Balance AdjustmentsIncome

StatementBalance Sheet

Cash 29080.28              

Petty Cash 300              

Accounts Receivable 11198.4              

Merchandise Inventory 270480      15840        

Supplies - Office 6480     2000        

Supplies - Store 6911     391        

Prepaid Insurance 5800     3170         

Accounts Payable   12542.38            

Employee Income Tax Payable   542            

Steps to completing Steps to completing the worksheetthe worksheet

1.1. Take all of the numbers from the Take all of the numbers from the general ledger and place them with general ledger and place them with the accounts that correspond with the accounts that correspond with the accounts on the worksheet.the accounts on the worksheet.

2.2. Total the columns on the trial Total the columns on the trial balance.balance.

3.3. Make the adjustmentsMake the adjustments

4.4. Total the adjustments column so that Total the adjustments column so that we know they are in balancewe know they are in balance

4.4. Move all of the information to Move all of the information to the appropriate columnsthe appropriate columns

1.1. Remember that the income Remember that the income summary is the line that we use to summary is the line that we use to help us as a guide.help us as a guide.

1.1. Everything above goes on the balance Everything above goes on the balance sheetsheet

2.2. Everything below goes on the income Everything below goes on the income statement columnsstatement columns

Omni Imports

Worksheet

For month Ended December 31 200X

Account Title Trial Balance Adjustments Income Statement Balance Sheet

Cash 29080.28           29080.28  

Petty Cash 300           300  

Accounts Recievable 11198.4           11198.4  

Merchandise Inventory 270480     15840     254640  

Supplies - Office 6480     4730     1750  

Supplies - Store 6911     3910     3034  

Prepaid Insurance 5800     3170     2630  

Accounts Payable   12542.38           12542.38

Employee Income Tax Payable   542           542

Social Security Tax Payable   985.4           985.4

Medicare Tax Payable   227.42           227.42

Sales Tax Payable   2112.05           2112.05

Unemployment Tax Pay - Fed   8.4           8.4

Unemployment Tax Pay - State   5670           56.7

Health Insurance Prem Pay   1008           1008

US. Savings Bonds Pay   60           60

United Way donations Pay   72           72

Karl Koehn, Capital   136750           136750

Karl Koehn, Drawing 29100           29100

Michelle Wu, Capital   136552.5           136552.5

Michelle Wu, Drawing 28800           28800  

Income Summary     15840   15840      

Sales   423120       423120    

Purchases 189960       189960      

Advertising Expense 6600       6600      

Credit Card Fee Expense 3385       3385      

Insurance Expense     3170   3170      

Miscellaneous Expense 2584.15       2584.15      

Payroll Taxes Expense 9105       9105      

Rent Expense 21000       21000      

Salary Expense 89400       89400      

Supplies Expense - Office     4730   4730      

Supplies Expense - Store     3910   3910      

Utilities Expense 3820       3820      

  714003.8 714036.8 27650 27650 353504.2 423120 360532.7 290916.8

Net Income                

                 

                 

4.4. Move all of the information to Move all of the information to the appropriate columnsthe appropriate columns

1.1. Remember that the income Remember that the income summary is the line that we use to summary is the line that we use to help us as a guide.help us as a guide.

1.1. Everything above goes on the balance Everything above goes on the balance sheetsheet

2.2. Everything below goes on the income Everything below goes on the income statement columnsstatement columns

5.5. Total the columns and Total the columns and determine net loss or gain.determine net loss or gain.

Income Summary     15840   15840      

Sales Tax Payable   423120       423120    

Purchases 189960       189960      

Advertising Expense 6600       6600      

Credit Card Fee Expense 3385       3385      

Insurance Expense     3170   3170      

Miscellaneous Expense 2584.15       2584.15      

Payroll Taxes Expense 9105       9105      

Rent Expense 21000       21000      

Salary Expense 89400       89400      

Supplies Expense - Office     4730   4730      

Supplies Expense - Store     3910   3910      

Utilities Expense 3820       3820      

  714003.8 714036.8 27650 27650 353504.2 423120 360532.7 290916.8

Net Income                

                 

                 

Debit Credit Debit Credit

69615.85 69615.85

423120423120 360532.68 360532.68