Financial Accounting: An Integrated Statements Approach, 2nd Edition

chapter

CHAPTER OUTLINE LEARNING GOALS IN-TEXT EXERCISES AND PROBLEMS

Accounting for Merchandise Operations

Merchandise Operations Learning Goal 1: Distinguish the
activities and financial statements of
a service business from those of a
merchandise business.

Exercises

5-1, 5-2, 5-4, 5-5

Financial Statements for a
Merchandising Business

• Multiple-Step Income Statement


• Single-Step Income Statement


• Retained Earnings Statement


• Balance Sheet


• Statement of Cash Flows


• Integration of Financial Statements

Learning Goal 2: Describe and

illustrate the financial statements of

a merchandising business.

Exercises

5-6, 5-7, 5-8 (spreadsheet), 5-9, 5-

10, 5-11 (spreadsheet), 5-12, 5-13,

5-14 (spreadsheet)

Accounting Application Problems

5-1A (spreadsheet), 5-2A (spreadsheet),

5-1B (spreadsheet), 5-2B (spreadsheet)

Sales Transactions

• Sales Discounts


• Sales Returns and Allowances

Learning Goal 3:Describe the

accounting for the sale of

merchandise.

Exercises

5-15, 5-16, 5-17, 5-18, 5-19,

5-28, 5-30

Accounting Application Problems

5-3A, 5-5A, 5-6A, 5-3B (spreadsheet),

5-5B, 5-6B

Purchase Transactions

• Purchase Discounts


• Purchases Returns and Allowances

Learning Goal 4:Describe the

accounting for the purchase of mer-

chandise.

Exercises

5-20, 5-21, 5-22, 5-23, 5-24, 5-25,

5-29, 5-30

Accounting Application Problems

5-4A, 5-5A, 5-6A, 5-4B, 5-5B, 5-6B

Transportation Costs and Sales Taxes

• Transportation Costs


• Sales Taxes

Learning Goal 5: Describe the

accounting for transportation

costs and sales taxes.

Exercises

5-26, 5-27, 5-30

Accounting Application Problems

5-3A, 5-4A, 5-5A, 5-6A, 5-3B

(spreadsheet), 5-4B, 5-5B, 5-6B

Dual Nature of
Merchandise Transactions

Learning Goal 6:Illustrate the dual

nature of merchandising transactions.

Accounting Application Problems

5-5A, 5-6A, 5-5B, 5-6B

Merchandise Shrinkage Learning Goal 7: Describe the
accounting for merchandise shrinkage.

Exercises

5-31

Effects of Inventory Misstatements
on the Financial Statements

Learning Goal 8: Describe and

illustrate the effects of inventory mis-

statements on the financial statements.

Exercises

5-32, 5-33, 5-34, 5-35

5

Gross Profit and Operating
Profit Analysis

Learning Goal 9:Describe and illustrate

the use of gross profit and operating

income in analyzing a company’s

operations.

Exercises

5-1, 5-2, 5-3, 5-4, 5-5, 5-36

Appendix: Statement of Cash Flows:
The Indirect Method

• Cash Flows from Operating Activities


• Cash Flows Used for Investing Activities


• Cash Flows Used for Financing Activities

Accounting Application Problems

5-7A (spreadsheet), 5-7B (spreadsheet)