Outline Flow of inventory cost Items and costs of merchandising inventory Assigning costs to inventory Lower of cost or market Errors in measuring inventory Inventory estimating method

Outline Merchandising activities Operating cycle of merchandising companies Merchandising cost accounts Inventory systems Merchandise purchases Sales transactions Adjusting and closing entries

Outline Describe the preparation of adjusted trial balance Describe and prepare a worksheet and describe its usefulness. Describe the closing process and explain why temporary accounts are closed each period. Prepare closing entries

Outline Describe the purpose of adjusting accounts at the end of the period. Prepare and explain adjusting entries for prepaid expenses, amortization, unearned revenues, accrued expenses, and accrued revenues. Explain how accounting adjustments link to financial statements

Outline Accounts Detailed Description of Various Accounts T- Accounts Rules of Debits and Credits Double-entry- Accounting Illustrated Application of Rules

Outline Enterprises Accounting Transactions, Accounting Events, and Accounting Circumstances Economic Activities and Accounting Elements Accounting Equation

Outline The nature of firm; The value of accounting; The Evolution of accounting; Accounting: bird view Task Team of FUNDAMENTALACCOUNTING, Business School, Yat-sen University

Learning objectives 1. Describe the principles of properly designed accounting systems. 2. Describe and illustrate the principles of internal control of accounting information systems. 3. Describe and illustrate the use oft special journals and subsidiary ledgers to process accounting data more efficiently

Lesson Notes Lesson 6Accounting for Merchandising Activities Learning Objectives 1. Describe merchandising activities and identify business types. 2. Identify and explain the important components of income for a merchandising company

Lesson 5 Completing the Accounting Cycle Learning objectives 1. Describe and prepare a worksheet and describe its usefulness. 2. Describe the closing process and explain why temporary accounts are closed each period