tailieunhanh - Lecture Accounting fundamentas (7e): Chapter 13 - Curran

Chapter 13 - Accounting for purchases. After completing this chapter, students will be able to: Record the entries for the purchase of merchandise for cash and on credit, record the entries for the purchase of supplies and other assets, record purchases discounts record the entries for freight in, record the entries for purchases returns and allowances. | CHAPTER THIRTEEN ACCOUNTING FOR PURCHASES 1. Record the entries for the purchase of merchandise for cash and on credit. 2. Record the entries for the purchase of supplies and other assets. 3. Record purchases discounts 4. Record the entries for freight in. 5. Record the entries for purchases returns and allowances. ACCOUNTING FOR PURCHASES Objectives: 13- Recording Purchases of Merchandise The purchase of merchandise for resale is recorded in an account called Merchandise Purchases. This account is usually referred to as a cost account and is a temporary account. 13- Recording Purchases of Merchandise (continued) Like the expense accounts, the Purchases account decreases owner’s equity. 13- Transaction $880 worth of merchandise was purchased for cash. 13- Transaction Analysis Merchandise purchases is debited for $880. Cash is credited for $880. 13- Transaction $1150 worth of merchandise was purchased on credit. 13- Transaction Analysis Merchandise purchases | CHAPTER THIRTEEN ACCOUNTING FOR PURCHASES 1. Record the entries for the purchase of merchandise for cash and on credit. 2. Record the entries for the purchase of supplies and other assets. 3. Record purchases discounts 4. Record the entries for freight in. 5. Record the entries for purchases returns and allowances. ACCOUNTING FOR PURCHASES Objectives: 13- Recording Purchases of Merchandise The purchase of merchandise for resale is recorded in an account called Merchandise Purchases. This account is usually referred to as a cost account and is a temporary account. 13- Recording Purchases of Merchandise (continued) Like the expense accounts, the Purchases account decreases owner’s equity. 13- Transaction $880 worth of merchandise was purchased for cash. 13- Transaction Analysis Merchandise purchases is debited for $880. Cash is credited for $880. 13- Transaction $1150 worth of merchandise was purchased on credit. 13- Transaction Analysis Merchandise purchases is debited for $1150. Accounts payable is credited for $1150. 13- Recording Other Purchases Be careful to record only purchases of merchandise for resale in the Merchandise Purchases account. Purchases of permanent assets, such as computers, copiers, and delivery equipment should be debited to the appropriate asset account and credited to Cash or Accounts Payable. 13- Recording Amounts Paid for Purchases of Merchandise on Credit Accounts Payable is debited and Cash is credited. 13- Transaction If the business takes advantage of a 2% discount on purchases of $1150, how would the transaction be recorded? 13- Transaction Analysis 2% of $1150 is $23. Accounts payable is debited for $1150. Cash is credited for $1127. Purchases discount is credited for $23. 13- Transaction Analysis (continued) 13- Recording Transportation Charges on Merchandise Purchases Freight in, another cost account, is debited for the transportation charges on all incoming merchandise purchases.

• Kế toán - Kiểm toán
• Accounting fundamentas
• Lecture Accounting fundamentas
• Nguyên lý kế toán
• Accounting for purchases
• Accounting for purchases
• Purchases discounts
• Freight in
• Trial balance
• Accounting errors
• Accounting terminology
• Accounting equation
• Balance sheet
• Principles of accounting
• Analyze business transactions
• Net income
• The worksheet
• Financial statements
• Business transactions
• Closing the ledger
• Closing entries
• Postclosing trial balance
• Accounting cycle
• Accounting for sales
• Sales discounts
• Sales returns
• Purchases journal
• Recording transactions
• Worksheet adjustments
• Uncollectible accounts
• Owner’s equity accounts
• Form of accounts
• Account balances
• Expense accounts
• Recording revenue
• Transaction analysis
• Income statement
• General journal
• Chart of accounts
• Business’s transactions
• General ledger
• Posting reference
• Correcting errors
• Merchandising businesses
• Charge account
• Cash discount
• Unpaid invoice file
• Purchases returns
• The sales journal
• Special journal
• Cash receipts journal
• Memorandum entry
• Cash payments journal
• Cash purchases
• Accounts receivable ledger
• Accounts receivable
• Statement of account
• Accounts payable ledger
• Schedule of accounts payable
• Notes payable
• Goods sold
• Cost of goods sold
• Ten column worksheet
• Classified balance sheet
• Adjusting entries
• Banking procedures
• Deposit slips
• Check stubs