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  • Publicado : 1 de noviembre de 2011
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Parte I
Service Business:
Fees Earned $ xxx
Operating Expenses - xxx
Net Income xxx

Parte II
Merchandising Business:
Sales $ xxx
Cos ofmerchandise sold - xxx
Gross Profit xxx
Operating Expenses - xxx
Net Income xxx

1) Cost of merchandise sold: when this merchandise is sold, the revenueis reported as sales, and it cost is recognized as an expenses.
2) Gross Profit: the cost of merchandise sold is subtracted from sales. (CMS – Sales= Gross Profit).
3) Merchandise Inventory:merchandise on hand (not sold) at the end of the accounting period.
4) Multiple-step income statement: contains, several sections, subsection, and subtotal.

Multiple Step Income Statement:
1-Revenue from sales: this section consists of sales, sales return and allowances, sales discount, and net sales.
Sales$ xxx
Less: Sales return and allowances $ xxx
Sales Discounts + xxx - xxx
Net Salesxxx
2- Cost of merchandise sold: Two systems of accounting for recording and reporting the cost of merchandise sold are:
a. Periodic inventory systems: theinventory records do not show the amount available for sale or the amount sold during the period.
b. Perpetual inventory systems: each purchased and sale of merchandise are recorded in the inventory andthe cost of merchandise sold accounts.
3- Gross Profit: is computed by subtracting the cost of merchandise sold from net sales.
Net sales $ xxx
Cost ofmerchandise sold - xxx
Gross Profit $ xxx
4- Income from operations: sometimes called operating income, is determinate by subtracting...
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