Grade 11 Accounting

References:

• Text, chapter 11, pages 423 - 458;

• Power Point Presentations:

  • Calculating Cost of Goods Sold

  • The Mystery of the Periodic Inventory

  • Maintaining a Perpetual Inventory System

Practice:

• Formative Merchandising Mastery Quiz (Sign into Blackboard before clicking this link.)

• Merchandising Unit Practice Test

• Merchandising Unit Practice Test - Answer Key

• Merchandising Transactions and Closing - Practice Scenarios

• Cost of Goods Sold Section of an Income Statement - Practice Scenario

Requirements:

In order to successfully complete the 3A Accounting quiz on accounting concepts for a merchandising firm, the student should be prepared to perform the following cognitive tasks:

• understand the need for a cost of goods sold section within a merchandising firm's Income Statement;

• calculate the following figures within a merchandising firm's Income Statement:
  • Net Sales;
  • Cost of Goods Sold;
  • Gross Profit From Sales; and
  • Net Income

• journalize credit and cash sales for a merchandising firm within a General Journal.

• understand how the following accounts affect either sales revenue or cost of goods sold:
  • Sales Returns and Allowances (a contra revenue account);
  • Sales Discounts (a contra revenue account);
  • Purchases (an expense account under the periodic inventory method);
  • Transportation-in (an expense account under the periodic inventory method);
  • Purchases Returns and Allowances (a contra expense account under the periodic inventory method); and
  • Purchases Discounts (a contra expense account under the periodic inventory method)

• differentiate between the periodic and the perpetual inventory systems;

• complete the closing entries for a periodic inventory system;

• complete the closing entries for a perpetual inventory system;

• complete a typical Worksheet for a merchandising firm using the periodic system.

• complete a typical Income Statement for a merchandising firm.