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Accounting I

Accounting I. Chapter 16 – Financial Statements for a Partnership. T ERMS REVIEW. cost of merchandise sold gross profit on sales. Lesson 16-1, page 396. T ERMS REVIEW. Cost of Merchandise Sold. The total original price of all merchandise sold during the fiscal period.

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Accounting I

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  1. Accounting I Chapter 16 – Financial Statements for a Partnership

  2. TERMS REVIEW cost of merchandise sold gross profit on sales Lesson 16-1, page 396

  3. TERMS REVIEW Cost of Merchandise Sold The total original price of all merchandise sold during the fiscal period. Lesson 16-1, page 392

  4. TERMS REVIEW Gross Profit on Sales The revenue remaining after cost of merchandise sold has been deducted. Lesson 16-1, page 394

  5. Copy to Income Statement INCOME STATEMENT INFORMATION ON A WORK SHEET Lesson 16-1, page 392

  6. FIRST TWO SECTIONS OF AN INCOME STATEMENT FOR A MERCHANDISING BUSINESS 1 2 3 1. Write the income statement heading on three lines. 2. Prepare the revenue section. 3. Prepare the merchandise sold section. Lesson 16-1, page 393

  7. COMPLETING AN INCOME STATEMENT FOR A MERCHANDISING BUSINESS 4. Calculate the gross profit on sales. 8 5. Prepare the expenses section. 6. Calculate the net income. 4 7. Rule double lines. 8. Calculate the component percentages. 5 6 Lesson 16-1, page 394 7

  8. Work Together & On Your Own – Page 396

  9. Acceptable Omni Import Industry Component Standards Percentages ANALYZING AN INCOME STATEMENT SHOWING A NET INCOME Sales 100% 100.0% Cost of merchandise sold not more than 50.0% 48.6% Gross profit on sales not less than 50.0% 51.4% Total expenses not more than 35.0% 34.9% Net income not less than 15.0% 16.5% Lesson 16-2, page 397

  10. ANALYZING AN INCOME STATEMENT SHOWING A NET LOSS Lesson 16-2, page 399

  11. Work Together & On Your Own – Page 401

  12. TERMS REVIEW distribution of net income statement owner’s equity statement Lesson 16-3, page 407

  13. TERMS REVIEW Distribution of Net Income (Loss) Statement A partnership financial statement showing net income or loss distribution to partners. Lesson 16-3, page 402

  14. TERMS REVIEW Owners’ Equity Statement A financial statement that summarizes the changes in owners’ equity during a fiscal period. Lesson 16-3, page 404

  15. PREPARING A DISTRIBUTION OF NET INCOME STATEMENT 1 2 3 4 5 6 7 8 1. Heading 5. Second Partner’s Share of Net Income 2. First Partner’s Name 6. Net Income 3. First Partner’s Share of Net Income 7. Total Net Income 8. Double Lines 4. Second Partner’s Name Lesson 16-3, page 402

  16. DISTRIBUTION OF NET INCOME STATEMENT WITH UNEQUAL DISTRIBUTION OF EARNINGS Lesson 16-3, page 403

  17. 3 5 OWNERS’ EQUITY STATEMENT 1 2 4 6 7 1. Heading 5. Second Partner’s Ending Capital 2. First Partner’s Name 6. Total Owners’ Equity 3. First Partner’s Ending Capital 7. Double Lines Lesson 16-3, page 405 4. Second Partner’s Name

  18. OWNERS’ EQUITY STATEMENT WITH AN ADDITIONAL INVESTMENT AND A NET LOSS Lesson 16-3, page 406

  19. Work Together & On Your Own – Page 407

  20. TERMS REVIEW supporting schedule Lesson 16-4, page 412

  21. TERMS REVIEW Supporting Schedule A report prepared to give details about an item on a principal financial statement. (Schedule of Accounts Payable/Receivable) Lesson 16-4, page 411

  22. BALANCE SHEET INFORMATION ON A WORK SHEET Lesson 16-4, page 408

  23. FIRST TWO SECTIONS OF A BALANCE SHEET FOR A MERCHANDISING BUSINESS 1 1. Prepare the heading. 2. Prepare the assets section. 2 3. Prepare the liabilities section. 3 Lesson 16-4, page 409

  24. 7 6 5 7 COMPLETING A BALANCE SHEET FOR A MERCHANDISING BUSINESS 4. Prepare the owners’ equity section. 5. Total the liabilities and owners’ equity sections. 6. Verify the accuracy by comparing totals. 7. Rule double lines. 4 Lesson 16-4, page 410

  25. Work Together & On Your Own – Page 412

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