tailieunhanh - Lecture Introduction to Accounting: An integrated approach: Chapter 8 - Penne Ainsworth, Dan Deines

Chapter 8 - Purchasing/Human resources/Payment process: Recording and evaluating expenditure process activities. The goals of this chapter are: Describe the difference between the periodic and perpetual inventory systems and record inventory activities using each system, discuss the difference between the net price and gross price methods for recording inventory and record inventory activities using each method, explain the payroll reporting process and record payroll and payroll taxes,. | Chapter 8 Purchasing/Human Resources/Payment Process: Recording and Evaluating Expenditure Process Activities Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 8- What are the 4 Primary Expenditure Process Activities? Determine the need for goods/services Select suppliers and order goods/services Receive goods/services Pay suppliers of goods/services 8- What is the Basic Flow of Information as Described in the Flowchart? Inventory control determines the need for inventory and notifies purchasing Purchasing places an order with a vendor Receiving notifies accounts payable that goods have been received Accounts payable compares the purchase order, receiving report, and vendor’s invoice and notifies the cashier Cashier pays the vendor General ledger updated 8- What are Special Journals and Subsidiary Ledgers Special journals Recurring, frequent transactions (events) Replaces the general journal for these events Purchases on account, sales on account, cash receipts, cash payments Subsidiary ledger Details regarding specific general ledger accounts Supports, but does not replace, general ledger Accounts payable, accounts receivable, inventory 8- What is the Difference between Merchandising and Manufacturing Inventories? Merchandising Inventory purchased to be resold Merchandise Inventory account Manufacturing Inventory purchased to be used to make products Raw Materials Inventory account 8- What is the Difference between Periodic and Perpetual Inventory Systems? Periodic Determine ending inventory and cost of goods sold (Chapter 10) at the end of the period Perpetual Determine cost of goods sold (Chapter 10) and ending inventory on a continuous basis 8- How are Inventory Activities Recorded in a Periodic System? Purchase Debit Purchases Credit Accounts Payable Return or allowance Debit Accounts Payable Credit Purchase Returns and Allowances Freight or insurance on purchases Debit Freight-in (Insurance-in) | Chapter 8 Purchasing/Human Resources/Payment Process: Recording and Evaluating Expenditure Process Activities Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 8- What are the 4 Primary Expenditure Process Activities? Determine the need for goods/services Select suppliers and order goods/services Receive goods/services Pay suppliers of goods/services 8- What is the Basic Flow of Information as Described in the Flowchart? Inventory control determines the need for inventory and notifies purchasing Purchasing places an order with a vendor Receiving notifies accounts payable that goods have been received Accounts payable compares the purchase order, receiving report, and vendor’s invoice and notifies the cashier Cashier pays the vendor General ledger updated 8- What are Special Journals and Subsidiary Ledgers Special journals Recurring, frequent transactions (events) Replaces the general journal for these events Purchases on account, .