Académique Documents
Professionnel Documents
Culture Documents
Chapter 13
13- 1
Learning Objective 1
13- 2
Learning Unit 13-1
13- 3
Learning Unit 13-1
Income Statement
–
Net Sales Cost of Goods Sold
–
= Gross Profit Operating Expenses
+
= Net Income from Operations Other Income
–
Other Expenses = Net Income
13- 4
Learning Unit 13-1 Example
Art’s Wholesale Clothing Company
Statement of Owner’s Equity
For Year ended December 31, 200x
Art’s, Capital, January 1, 200x $ 7,905
Net Income for the Year $13,745
Less Withdrawals for the Year 8,600
Increase in Capital 5,145
Art’s, Capital, December 31, 200x $13,050
13- 5
Learning Unit 13-1 Example
Art’s Wholesale Clothing Company
Classified Balance Sheet
December 31, 200X
Assets Liabilities
Current Assets: Current Liabilities:
Cash $10,920 Accounts Payable $17,900
Accounts Receivable 14,500 Salary Payable 3,070
Inventory 2,300 Tax Payable 1,500
Total Current Assets $27,720 Total Liabilities $22,470
Plant Assets Owner’s Equity
Equipment $15,500 Capital $13,050
Less Accum. Dep. 7,700 7,800
Total Liabilities and
Total Assets $35,520 Owner’s Equity $35,520
13- 6
Learning Objective 2
Recording adjusting
and closing entries.
13- 7
Learning Unit 13-2
13- 8
Learning Unit 13-2
13- 9
Learning Unit 13-2
13- 10
Learning Unit 13-2
13- 11
Learning Objective 3
Preparing a post-
closing trial balance.
13- 12
Learning Unit 13-3 Example
Art’s Wholesale Clothing Company
Post-Closing Trial Balance
December 31, 200X
Cash $10,920
Accounts Receivable 14,500
Inventory 2,300
Equipment 15,500
Total $43,220
13- 13
Learning Unit 13-3 Example
Art’s Wholesale Clothing Company
Post-Closing Trial Balance
December 31, 200X
13- 15
Reversing Entries Example
13- 16
Reversing Entries Example
13- 17
Reversing Entries Example
13- 18
End of Chapter 13
13- 19