acct20-chapter 10
TRANSCRIPT
TTERMS REVIEWERMS REVIEWpartnership
partner
merchandising business
retail merchandising business
merchandise
Lesson 10-1, page 232Lesson 10-1, page 232
wholesale merchandising business
cost of merchandise
markup
vendor
TTERMS REVIEWERMS REVIEW
PartnershipPartnership
A business in which two or more persons combine their assets and skills.
Lesson 10-1, page 226Lesson 10-1, page 226
TTERMS REVIEWERMS REVIEW
PartnerPartner
Each member of a partnership.
Lesson 10-1, page 226Lesson 10-1, page 226
TTERMS REVIEWERMS REVIEW
Merchandising BusinessMerchandising Business
A business that purchases and sells goods.
Lesson 10-1, page 228Lesson 10-1, page 228
TTERMS REVIEWERMS REVIEW
Retail Merchandising BusinessRetail Merchandising Business
A merchandising business that sells to those who use or consume the goods.
Lesson 10-1, page 228Lesson 10-1, page 228
TTERMS REVIEWERMS REVIEW
MerchandiseMerchandise
Goods that a merchandising business purchases to sell.
Lesson 10-1, page 228Lesson 10-1, page 228
TTERMS REVIEWERMS REVIEW
Wholesale Merchandising BusinessWholesale Merchandising Business
A business that buys and resells merchandise to retail merchandising businesses.
Lesson 10-1, page 228Lesson 10-1, page 228
TTERMS REVIEWERMS REVIEW
Cost of MerchandiseCost of Merchandise
The price a business pays for goods it purchases to sell.
Lesson 10-1, page 230Lesson 10-1, page 230
TTERMS REVIEWERMS REVIEW
MarkupMarkup
The amount added to the cost of merchandise to establish the selling price.
Lesson 10-1, page 230Lesson 10-1, page 230
TTERMS REVIEWERMS REVIEW
VendorVendor
A business from which merchandise is purchased or supplies or other assets are bought.
Lesson 10-1, page 230Lesson 10-1, page 230
PURCHASING MERCHANDISE FOR CASHPURCHASING MERCHANDISE FOR CASH
November 1. Purchased merchandise for cash, $575.00 Check No. 290.
1. Which accounts are affected?
Purchases
Cash
4. How is each amount entered in the accounts?
Costs increase on the debit side.
Assets decrease on the credit side.
3. How is each classification changed?
Costs are increased.
Assets are decreased.
2. How is each account classified?
Purchases is a cost account.
Cash is an asset account. Cash
Purchases
DebitNormal Balance
DebitNormal Balance
575.00
575.00
Lesson 10-1, page 231Lesson 10-1, page 231
2. Place a check mark in the Account Title column to show that no account title is needed.
PURCHASING MERCHANDISE FOR CASHPURCHASING MERCHANDISE FOR CASH
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1 3
42
3. Write the check number.
1. Write the date.
4. Place a check mark in the Post. Ref. column to show that amounts are not to be posted individually.
5. Write the debit amount.
6. Write the credit amount.
6
Lesson 10-1, page 231Lesson 10-1, page 231
TTERMS REVIEWERMS REVIEW
Purchase InvoicePurchase Invoice
An invoice used as a source document for recording a purchase on account transaction.
Lesson 10-2, page 233Lesson 10-2, page 233
TTERMS REVIEWERMS REVIEW
Terms of SaleTerms of Sale
An agreement between a buyer and a seller about payment for merchandise.
Lesson 10-2, page 233Lesson 10-2, page 233
PURCHASE INVOICEPURCHASE INVOICE
1
3
4
2
3. Initials of person who checked invoice.
1. Stamp date received and purchase invoice number.
4. Review vendor’s terms of sale.
2. Place a check mark by each amount.
Lesson 10-2, page 233Lesson 10-2, page 233
PURCHASING MERCHANDISE ON ACCOUNTPURCHASING MERCHANDISE ON ACCOUNT
November 2. Purchased merchandise on account from Crown Ltd., $2,039.99. Purchase Invoice No. 83.
1. Which accounts are affected?
Purchases
Accounts Payable
4. How is each amount entered in the accounts?
Costs increase on the debit side.
Liabilities increase on the credit side.
3. How is each classification changed?
Costs are increased.
Liabilities are increased.
2. How is each account classified?
Purchases is a cost account.
Accounts Payable is a liability account.
DebitNormal Balance
CreditNormal Balance
2,039.00
2,039.00
Lesson 10-2, page 234Lesson 10-2, page 234
Accounts Payable
Purchases
PURCHASING MERCHANDISE ON ACCOUNTPURCHASING MERCHANDISE ON ACCOUNT
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3 4
2
3. Write the purchase invoice number in the Doc. No. column.
1. Write the date.
4. Write the credit amount.
2. Write the vendor name in the Account Title column.
5. Write the debit amount.
Lesson 10-2, page 234Lesson 10-2, page 234
BUYING SUPPLIES FOR CASHBUYING SUPPLIES FOR CASH
Lesson 10-2, page 235Lesson 10-2, page 235
51
3 4
2
3. Write the check number.
1. Write the date.
4. Write the debit amount.
2. Write the account title.
5. Write the credit amount.
2. Write the account title.
BUYING SUPPLIES ON ACCOUNTBUYING SUPPLIES ON ACCOUNT
5
1 3 42
3. Write the memorandum number.
1. Write the date.
4. Write the debit amount.
5. Write the vendor name.
6. Write the credit amount.
6
Lesson 10-2, page 236Lesson 10-2, page 236
CASH PAYMENT ON ACCOUNTCASH PAYMENT ON ACCOUNT
5
1
3 4
2
3. Write the check number.
1. Write the date.
4. Write the debit amount.
2. Write the vendor name.
5. Write the credit amount.
Lesson 10-3, page 238Lesson 10-3, page 238
CASH PAYMENT OF AN EXPENSECASH PAYMENT OF AN EXPENSE
5
1
3 4
2
3. Write the check number.
1. Write the date.
4. Write the debit amount.
2. Write the vendor name account title.
5. Write the credit amount.
Lesson 10-3, page 239Lesson 10-3, page 239
Supplies—Store
Cash
Miscellaneous Expense
Advertising ExpenseSupplies—Office
CASH PAYMENT TO REPLENISH PETTY CASHCASH PAYMENT TO REPLENISH PETTY CASH
November 9. Paid cash to replenish the petty cash fund, $205.00: office supplies, $35.00; store supplies, $47.00; advertising, $92.00; miscellaneous, $31.00. Check No. 297.
Accounts Affected
Supplies—Office
Supplies—Store
Advertising Expense
Miscellaneous Expense
Cash
Entered
Debit side
Debit side
Debit side
Debit side
Credit side
Change
Increased
Increased
Increased
Increased
Decreased
Lesson 10-3, page 240Lesson 10-3, page 240
Classification
Asset
Asset
Expense
Expense
Asset
normal balance
205.00
normal balance
92.00
normal balance
35.00
normal balance
31.00
normal balance
47.00
CASH PAYMENT TO REPLENISH PETTY CASHCASH PAYMENT TO REPLENISH PETTY CASH
5
1 3
4
2
3. Write the check number.
1. Write the date.
4. Write the debit amounts.
2. Write the titles of accounts for which petty cash was used.
5. Write the credit amount.
Lesson 10-3, page 240Lesson 10-3, page 240
CashMichelle Wu, Drawing
CASH WITHDRAWALS BY PARTNERSCASH WITHDRAWALS BY PARTNERS
November 10. Michelle Wu, partner, withdrew cash for personal use, $1,200.00. Check No. 298.
Accounts Affected
Michelle Wu, Drawing
Cash
Entered
Debit side
Credit side
Change
Increased
Decreased
Lesson 10-3, page 241Lesson 10-3, page 241
Classification
Drawing
Asset
normal balance
1,200.00normal balance
1,200.00
CASH WITHDRAWALS BY PARTNERSCASH WITHDRAWALS BY PARTNERS
51 3
4
2
3. Write the check number.
1. Write the date.
4. Write the debit amount.
2. Write the account title.
5. Write the credit amount.
Lesson 10-3, page 241Lesson 10-3, page 241
PurchasesKarl Koehn, Drawing
MERCHANDISE WITHDRAWALS BY PARTNERSMERCHANDISE WITHDRAWALS BY PARTNERS
November 12. Karl Koehn, partner, withdrew merchandise for personal use, $300.00. Memorandum No. 53.
Accounts Affected
Karl Koehn, Drawing
Purchases
Entered
Debit side
Credit side
Change
Increased
Decreased
Lesson 10-3, page 242Lesson 10-3, page 242
Classification
Drawing
Cost
normal balance
300.00normal balance
300.00
MERCHANDISE WITHDRAWALS BY PARTNERSMERCHANDISE WITHDRAWALS BY PARTNERS
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1 3
4
2
3. Write the memorandum number.
1. Write the date.
4. Write the debit amount.
2. Write the account title Karl Koehn, Drawing.
5. Write the account title Purchases.
6. Write the credit amount.
6
Lesson 10-3, page 242Lesson 10-3, page 242