This week, we will be reviewing Chapter 5 on Merchandising Operations. Companies like Wal-Mart, Target, and Amazon are all examples of companies that purchase inventory from suppliers, and then sell those products to consumers.
1). Describe the 2 formats for the income statement of a merchandising company, and list the respective sub-totals found in each income statement format. (You should describe some of the accounts found on each type of income statement).Accounting homework help
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2). a) Describe purchase discounts and purchase returns & allowances.
b) Describe the 2 shipping terms methods companies use when delivering products, and how freight costs are accounted for.
3). Sales on Account – Many sales are made on account (on credit) instead of with cash or a credit card. Assume that your new company purchases products for resell to customers, and your plan is to sell those products at a profit. Make the appropriate journal entries to record the sale (on account – ie., on credit) assuming your company sells 4 of those products to a single customer. (You should select any price you wish to pay to your vendor for the purchase). Hint –
There will be 2 entries…
Be sure to include both the sale to the customer, as well as the impact of the reduction of inventory through cost of goods sold.
Module 4 Discussion
In this week’s discussion, we will be looking at some of the differences between U.S. GAAP and IFRS, which is the set of accounting rules followed by just about every industrialized nation outside the U.S. While there are many similarities between the two systems, there are also some significant differences. After learning a little bit about some of the similarities and differences, please reflect somewhat on how these differences might impact financial statement analysis, or if you think they actually would. Accounting homework help
Review the sections on international accounting (IFRS) (See pages 9, 10, 59, 184, 267, 339, 376, 431, 489, 556, 568, 571, 668, 701.)
1. Discuss the major similarities and differences between U.S. GAAP and IFRS.
2. Which of the differences do you find most interesting?
3. If there is a convergence between U.S. GAAP and IFRS, would you choose the U.S. GAAP or IFRS method? Why?
Module 5 Discussion
1. Summarize the events of a recent accounting scandal.
2. Identify how the illegal/unethical act was detected and the punishments that resulted (fines, prison terms, etc.).
3. What could have been done to detect this act earlier.
4. What could have been done to prevent this from happening in the first place.
IMPORTANT NOTE: Be sure to consider the core value(s) of responsible stewardship and/or integrity in your responses (particularly with item 4). Accounting homework help
