{"product_id":"wiley-pathways-small-business-accounting-isbn-9780470198636","title":"Wiley Pathways Small Business Accounting","description":"When it comes to operating a small business, it doesn't matter how good the idea is if the accounting behind the operations isn't solid. Now readers have a resource that covers the accounting tools and strategies that will help them run a successful company. They'll gain a strong foundation in basic accounting and then progress to accounting strategies for service businesses. They'll also learn about basic accounting procedures and find ways to utilize accounting techniques for a merchandising business. \u003cp\u003e\u003cb\u003ePART I The Foundation of Accounting\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 1. \u003c\/b\u003e\u003cb\u003eACCOUNTING FOR YOUR BUSINESS 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 2\u003c\/p\u003e \u003cp\u003e1.1. Basic Accounting Concepts 2\u003c\/p\u003e \u003cp\u003e1.1.1 Separate Entity Assumption 2\u003c\/p\u003e \u003cp\u003e1.1.2 Accounting Period Assumption 3\u003c\/p\u003e \u003cp\u003e1.1.3 Cash-Basis and Accrual Accounting 3\u003c\/p\u003e \u003cp\u003e1.1.4 Internal Controls 5\u003c\/p\u003e \u003cp\u003eSelf-Check 6\u003c\/p\u003e \u003cp\u003e1.2. Types of Businesses 6\u003c\/p\u003e \u003cp\u003e1.2.1 Types of Business Operations 6\u003c\/p\u003e \u003cp\u003e1.2.2 Legal Forms of Business Structure 7 Self-Check 12\u003c\/p\u003e \u003cp\u003e1.3. Accounting Software Options 12\u003c\/p\u003e \u003cp\u003e1.3.1 Overview of Software Options 13\u003c\/p\u003e \u003cp\u003e1.3.2 Add-Ons and Fees 16\u003c\/p\u003e \u003cp\u003e1.3.3 Setting Up Your Computerized Books 16\u003c\/p\u003e \u003cp\u003eSelf-Check 19\u003c\/p\u003e \u003cp\u003eSummary 19\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 20\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 21\u003c\/p\u003e \u003cp\u003eKey Terms 22\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 2. \u003c\/b\u003e\u003cb\u003eMASTERING DEBITS AND CREDITS 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 24\u003c\/p\u003e \u003cp\u003e2.1 Differentiating Debits and Credits 24\u003c\/p\u003e \u003cp\u003e2.1.1 Double-Entry Accounting 24\u003c\/p\u003e \u003cp\u003e2.1.2 The Accounting Equation 25\u003c\/p\u003e \u003cp\u003e2.1.3 The T-Account Tool 27\u003c\/p\u003e \u003cp\u003e2.1.4 Analyzing Transactions 28\u003c\/p\u003e \u003cp\u003eSelf-Check 30\u003c\/p\u003e \u003cp\u003e2.2 Overview of Financial Statements 30\u003c\/p\u003e \u003cp\u003e2.2.1 The Balance Sheet 30\u003c\/p\u003e \u003cp\u003e2.2.2 The Income Statement 32\u003c\/p\u003e \u003cp\u003eSelf-Check 32\u003c\/p\u003e \u003cp\u003e2.3 The Chart of Accounts 33\u003c\/p\u003e \u003cp\u003e2.3.1 Account Sections 33\u003c\/p\u003e \u003cp\u003e2.3.2 Account Numbers 34\u003c\/p\u003e \u003cp\u003e2.3.3 Managing an Efficient Chart of Accounts 35\u003c\/p\u003e \u003cp\u003eSelf-Check 37\u003c\/p\u003e \u003cp\u003eSummary 37\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 38\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 41\u003c\/p\u003e \u003cp\u003eKey Terms 42\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 3. \u003c\/b\u003e\u003cb\u003eBEGINNING THE ACCOUNTING CYCLE 43\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 44\u003c\/p\u003e \u003cp\u003e3.1. Steps of the Accounting Cycle 44\u003c\/p\u003e \u003cp\u003e3.1.1 Transactions 45\u003c\/p\u003e \u003cp\u003e3.1.2 Journal Entries 45\u003c\/p\u003e \u003cp\u003e3.1.3 Posting 45\u003c\/p\u003e \u003cp\u003e3.1.4 Trial Balance 45\u003c\/p\u003e \u003cp\u003e3.1.5 Worksheet 46\u003c\/p\u003e \u003cp\u003e3.1.6 Adjusting Journal Entries 46\u003c\/p\u003e \u003cp\u003e3.1.7 Financial Statements 46\u003c\/p\u003e \u003cp\u003e3.1.8 Closing 46\u003c\/p\u003e \u003cp\u003eSelf-Check 47\u003c\/p\u003e \u003cp\u003e3.2 Introduction to Journals and Ledgers 47\u003c\/p\u003e \u003cp\u003e3.2.1 Journals 47\u003c\/p\u003e \u003cp\u003e3.2.2 Ledgers 49\u003c\/p\u003e \u003cp\u003eSelf-Check 51\u003c\/p\u003e \u003cp\u003e3.3 Keeping the Right Paperwork 51\u003c\/p\u003e \u003cp\u003e3.3.1 Creating a Filing System 52\u003c\/p\u003e \u003cp\u003e3.3.2 Figuring Out What to Keep and for How Long 53\u003c\/p\u003e \u003cp\u003eSelf-Check 55\u003c\/p\u003e \u003cp\u003eSummary 55\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 57\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 58\u003c\/p\u003e \u003cp\u003eKey Terms 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART II Accounting for a Service Business\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 4. \u003c\/b\u003e\u003cb\u003eJOURNALIZING TRANSACTIONS 61\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 62\u003c\/p\u003e \u003cp\u003e4.1 Starting Your Business 62\u003c\/p\u003e \u003cp\u003e4.1.1 Using the General Journal 62\u003c\/p\u003e \u003cp\u003e4.1.2 Equity Transactions 64\u003c\/p\u003e \u003cp\u003eSelf-Check 68\u003c\/p\u003e \u003cp\u003e4.2 Buying and Selling 69\u003c\/p\u003e \u003cp\u003e4.2.1 Buying for the Business 69\u003c\/p\u003e \u003cp\u003e4.2.2 Making the Sale 72\u003c\/p\u003e \u003cp\u003eSelf-Check 74\u003c\/p\u003e \u003cp\u003e4.3 Other Transactions 74\u003c\/p\u003e \u003cp\u003e4.3.1 Accounts Payable and Accounts Receivable 75\u003c\/p\u003e \u003cp\u003e4.3.2 The Completed General Journal 75\u003c\/p\u003e \u003cp\u003eSelf-Check 77\u003c\/p\u003e \u003cp\u003eSummary 77\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 78\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 80\u003c\/p\u003e \u003cp\u003eKey Terms 81\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 5. \u003c\/b\u003e\u003cb\u003ePOSTING TRANSACTIONS AND PREPARING A TRIAL BALANCE 83\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 84\u003c\/p\u003e \u003cp\u003e5.1 Updating Ledger Accounts 84\u003c\/p\u003e \u003cp\u003e5.1.1 The Ledger Account Form 84\u003c\/p\u003e \u003cp\u003e5.1.2 Posting from the General Journal to the General Ledger 85\u003c\/p\u003e \u003cp\u003eSelf-Check 91\u003c\/p\u003e \u003cp\u003e5.2 Maintaining the General Ledger 91\u003c\/p\u003e \u003cp\u003e5.2.1 Calculating the Account Balances 91\u003c\/p\u003e \u003cp\u003e5.2.2 Correcting Errors in a Manual System 92\u003c\/p\u003e \u003cp\u003eSelf-Check 93\u003c\/p\u003e \u003cp\u003e5.3 Computerized Posting 94\u003c\/p\u003e \u003cp\u003e5.3.1 Several Tasks at the Same Time 94\u003c\/p\u003e \u003cp\u003e5.3.2 Researching Transactions 94\u003c\/p\u003e \u003cp\u003e5.3.3 Correcting Transactions 95\u003c\/p\u003e \u003cp\u003eSelf-Check 97\u003c\/p\u003e \u003cp\u003e5.4 Preparing the Trial Balance 97\u003c\/p\u003e \u003cp\u003e5.4.1 Preparing a Manual Trial Balance 98\u003c\/p\u003e \u003cp\u003e5.4.2 What to Do If You’re Out of Balance 100\u003c\/p\u003e \u003cp\u003e5.4.3 Preparing a Trial Balance Using Software 100\u003c\/p\u003e \u003cp\u003e5.4.4 Limitations of the Trial Balance 102\u003c\/p\u003e \u003cp\u003eSelf-Check 102\u003c\/p\u003e \u003cp\u003eSummary 102\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 104\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 107\u003c\/p\u003e \u003cp\u003eKey Terms 108\u003c\/p\u003e \u003cp\u003eReferences 109\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 6. \u003c\/b\u003e\u003cb\u003eADJUSTMENTS AND THE WORKSHEET 111\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 112\u003c\/p\u003e \u003cp\u003e6.1 Setting Up the Worksheet 112\u003c\/p\u003e \u003cp\u003eSelf-Check 114\u003c\/p\u003e \u003cp\u003e6.2 Calculating the Adjustments 114\u003c\/p\u003e \u003cp\u003e6.2.1 Prepaid Expenses 115\u003c\/p\u003e \u003cp\u003e6.2.2 Depreciation 116\u003c\/p\u003e \u003cp\u003e6.2.3 Bad Debts 120\u003c\/p\u003e \u003cp\u003e6.2.4 The Adjusted Trial Balance 122\u003c\/p\u003e \u003cp\u003eSelf-Check 124\u003c\/p\u003e \u003cp\u003e6.3 Completing the Worksheet 125\u003c\/p\u003e \u003cp\u003e6.3.1 Showing Net Income on the Worksheet 125\u003c\/p\u003e \u003cp\u003e6.3.2 Journalizing and Posting the Adjustments 127\u003c\/p\u003e \u003cp\u003e6.3.3 Replacing Worksheets with Computerized Reports 130\u003c\/p\u003e \u003cp\u003eSelf-Check 130\u003c\/p\u003e \u003cp\u003eSummary 130\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 132\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 135\u003c\/p\u003e \u003cp\u003eKey Terms 136\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 7. \u003c\/b\u003e\u003cb\u003eFINANCIAL STATEMENTS AND THE CLOSING PROCESS 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 138\u003c\/p\u003e \u003cp\u003e7.1 The Income Statement 138\u003c\/p\u003e \u003cp\u003e7.1.1 Preparing the Income Statement 138\u003c\/p\u003e \u003cp\u003e7.1.2 Gaining Insight from an Income Statement 139\u003c\/p\u003e \u003cp\u003e7.1.3 Analyzing the Income Statement 141\u003c\/p\u003e \u003cp\u003e7.1.4 Using the Income Statement Data 142\u003c\/p\u003e \u003cp\u003eSelf-Check 143\u003c\/p\u003e \u003cp\u003e7.2 The Balance Sheet 144\u003c\/p\u003e \u003cp\u003e7.2.1 The Statement of Owner’s Equity 144\u003c\/p\u003e \u003cp\u003e7.2.2 Preparing the Balance Sheet 146\u003c\/p\u003e \u003cp\u003e7.2.3 Analyzing the Balance Sheet 147\u003c\/p\u003e \u003cp\u003eSelf-Check 152\u003c\/p\u003e \u003cp\u003e7.3 The Closing Process 152\u003c\/p\u003e \u003cp\u003e7.3.1 Permanent and Temporary Accounts 152\u003c\/p\u003e \u003cp\u003e7.3.2 Closing the Temporary Accounts 153\u003c\/p\u003e \u003cp\u003e7.3.3 Preparing a Postclosing Trial Balance 158\u003c\/p\u003e \u003cp\u003eSelf-Check 159\u003c\/p\u003e \u003cp\u003eSummary 160\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 161\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 163\u003c\/p\u003e \u003cp\u003eKey Terms 164\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART III Basic Accounting Procedures\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 8. \u003c\/b\u003e\u003cb\u003eCASH, BANKING, AND INTERNAL CONTROLS 165\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 166\u003c\/p\u003e \u003cp\u003e8.1 Protecting against Internal Fraud 166\u003c\/p\u003e \u003cp\u003e8.1.1 Types of Internal Fraud 166\u003c\/p\u003e \u003cp\u003e8.1.2 Dividing Staff Responsibilities 168\u003c\/p\u003e \u003cp\u003e8.1.3 Insuring Your Cash through Employee Bonding 170\u003c\/p\u003e \u003cp\u003e8.1.4 Balancing Control Costs 170\u003c\/p\u003e \u003cp\u003eSelf-Check 171\u003c\/p\u003e \u003cp\u003e8.2 Cash in the Bank 171\u003c\/p\u003e \u003cp\u003e8.2.1 Checking Accounts 172\u003c\/p\u003e \u003cp\u003e8.2.2 Savings Accounts 174\u003c\/p\u003e \u003cp\u003e8.2.3 Bank Reconciliations 174\u003c\/p\u003e \u003cp\u003eSelf-Check 178\u003c\/p\u003e \u003cp\u003e8.3 Cash on Hand 178\u003c\/p\u003e \u003cp\u003e8.3.1 Petty Cash 179\u003c\/p\u003e \u003cp\u003e8.3.2 Cash Registers 181\u003c\/p\u003e \u003cp\u003eSelf-Check 186\u003c\/p\u003e \u003cp\u003eSummary 186\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 188\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 190\u003c\/p\u003e \u003cp\u003eKey Terms 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 9. \u003c\/b\u003e\u003cb\u003eEMPLOYEE PAYROLL AND DEDUCTIONS 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 194\u003c\/p\u003e \u003cp\u003e9.1 Staffing Your Business 194\u003c\/p\u003e \u003cp\u003e9.1.1 Completing Government Forms 194\u003c\/p\u003e \u003cp\u003e9.1.2 Picking Pay Periods 201\u003c\/p\u003e \u003cp\u003e9.1.3 Determining Wage and Salary Types 202\u003c\/p\u003e \u003cp\u003eSelf-Check 204\u003c\/p\u003e \u003cp\u003e9.2 Payroll Tax Withholdings 204\u003c\/p\u003e \u003cp\u003e9.2.1 Social Security Tax 204\u003c\/p\u003e \u003cp\u003e9.2.2 Medicare Tax 205\u003c\/p\u003e \u003cp\u003e9.2.3 Federal Income Tax 205\u003c\/p\u003e \u003cp\u003e9.2.4 State and Local Income Taxes 206\u003c\/p\u003e \u003cp\u003eSelf-Check 207\u003c\/p\u003e \u003cp\u003e9.3 Employee Benefits 207\u003c\/p\u003e \u003cp\u003e9.3.1 Tax-Exempt Benefits 207\u003c\/p\u003e \u003cp\u003e9.3.2 Taxable Benefits 209\u003c\/p\u003e \u003cp\u003eSelf-Check 210\u003c\/p\u003e \u003cp\u003e9.4 Payday 210\u003c\/p\u003e \u003cp\u003e9.4.1 Calculating Gross Earnings 210\u003c\/p\u003e \u003cp\u003e9.4.2 Calculating Net Pay 212\u003c\/p\u003e \u003cp\u003e9.4.3 Recording the Payroll 213\u003c\/p\u003e \u003cp\u003e9.4.4 Depositing Payroll Taxes 217\u003c\/p\u003e \u003cp\u003e9.4.5 Outsourcing Payroll and Benefits Work 217\u003c\/p\u003e \u003cp\u003eSelf-Check 217\u003c\/p\u003e \u003cp\u003eSummary 218\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 220\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 222\u003c\/p\u003e \u003cp\u003eKey Terms 223\u003c\/p\u003e \u003cp\u003eReferences 225\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 10. \u003c\/b\u003e\u003cb\u003eUNDERSTANDING PAYROLL LEGALITIES 227\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 228\u003c\/p\u003e \u003cp\u003e10.1 Payroll Tax Deposits 228\u003c\/p\u003e \u003cp\u003e10.1.1 When to Deposit Taxes 228\u003c\/p\u003e \u003cp\u003e10.1.2 How to Deposit Taxes 230\u003c\/p\u003e \u003cp\u003e10.1.3 Accounting for Tax Deposits 230\u003c\/p\u003e \u003cp\u003eSelf-Check 231\u003c\/p\u003e \u003cp\u003e10.2 Payroll Tax Returns 231\u003c\/p\u003e \u003cp\u003e10.2.1 Filing Form 941 231\u003c\/p\u003e \u003cp\u003e10.2.2 Filing Form 940 235\u003c\/p\u003e \u003cp\u003eSelf-Check 240\u003c\/p\u003e \u003cp\u003e10.3 Year-End Reporting 243\u003c\/p\u003e \u003cp\u003e10.3.1 Filing the W-2 Forms 243\u003c\/p\u003e \u003cp\u003e10.3.2 Filing the W-3 Form 247\u003c\/p\u003e \u003cp\u003eSelf-Check 249\u003c\/p\u003e \u003cp\u003e10.4 Workers’ Compensation Insurance 249\u003c\/p\u003e \u003cp\u003eSelf-Check 252\u003c\/p\u003e \u003cp\u003e10.5 Maintaining Employee Records 252\u003c\/p\u003e \u003cp\u003eSelf-Check 254\u003c\/p\u003e \u003cp\u003eSummary 254\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 256\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 257\u003c\/p\u003e \u003cp\u003eKey Terms 258\u003c\/p\u003e \u003cp\u003eReferences 259\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 11. \u003c\/b\u003e\u003cb\u003eSPECIAL JOURNALS: SALES AND CASH RECEIPTS 261\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 262\u003c\/p\u003e \u003cp\u003e11.1 Special Journals 262\u003c\/p\u003e \u003cp\u003e11.1.1 Sales Journal 262\u003c\/p\u003e \u003cp\u003e11.1.2 Cash Receipts Journal 264\u003c\/p\u003e \u003cp\u003eSelf-Check 271\u003c\/p\u003e \u003cp\u003e11.2 Posting from Special Journals 271\u003c\/p\u003e \u003cp\u003e11.2.1 Subsidiary Ledgers 271\u003c\/p\u003e \u003cp\u003e11.2.2 Posting from the Sales Journal 272\u003c\/p\u003e \u003cp\u003e11.2.3 Posting from the Cash Receipts Journal 275\u003c\/p\u003e \u003cp\u003eSelf-Check 278\u003c\/p\u003e \u003cp\u003e11.3 Sales Returns and Allowances 278\u003c\/p\u003e \u003cp\u003e11.3.1 Journalizing Sales Returns and Allowances 279\u003c\/p\u003e \u003cp\u003e11.3.2 Posting Sales Returns and Allowances 279\u003c\/p\u003e \u003cp\u003eSelf-Check 281\u003c\/p\u003e \u003cp\u003e11.4 Accounts Receivable Aging Summary 281\u003c\/p\u003e \u003cp\u003eSelf-Check 282\u003c\/p\u003e \u003cp\u003eSummary 283\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 284\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 291\u003c\/p\u003e \u003cp\u003eKey Terms 292\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 12. \u003c\/b\u003e\u003cb\u003eSPECIAL JOURNALS: PURCHASES AND CASH DISBURSEMENTS 293\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 294\u003c\/p\u003e \u003cp\u003e12.1 Purchases Journal 294\u003c\/p\u003e \u003cp\u003e12.1.1 Purchases Account 294\u003c\/p\u003e \u003cp\u003e12.1.2 Parts of a Purchases Journal 295\u003c\/p\u003e \u003cp\u003eSelf-Check 296\u003c\/p\u003e \u003cp\u003e12.2 Cash Disbursements Journal 296\u003c\/p\u003e \u003cp\u003e12.2.1 Part of a Cash Disbursements Journal 296\u003c\/p\u003e \u003cp\u003e12.2.2 Paying an Outstanding Bill 298\u003c\/p\u003e \u003cp\u003e12.2.3 Paying Expenses 298\u003c\/p\u003e \u003cp\u003e12.2.4 Paying Credit-Card Fees 299\u003c\/p\u003e \u003cp\u003e12.2.5 Paying Loans and Interest 299\u003c\/p\u003e \u003cp\u003e12.2.6 Paying Sales Tax 302\u003c\/p\u003e \u003cp\u003eSelf-Check 303\u003c\/p\u003e \u003cp\u003e12.3 Posting Purchases and Cash Disbursements 303\u003c\/p\u003e \u003cp\u003e12.3.1 Posting from the Purchases Journal 303\u003c\/p\u003e \u003cp\u003e12.3.2 Posting from the Cash Disbursements Journal 306\u003c\/p\u003e \u003cp\u003eSelf-Check 308\u003c\/p\u003e \u003cp\u003e12.4 Managing Accounts Payable 309\u003c\/p\u003e \u003cp\u003e12.4.1 Purchases Returns and Allowances 309\u003c\/p\u003e \u003cp\u003e12.4.2 Accounts Payable Aging Summary 310\u003c\/p\u003e \u003cp\u003eSelf-Check 311\u003c\/p\u003e \u003cp\u003eSummary 311\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 312\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 316\u003c\/p\u003e \u003cp\u003eKey Terms 317\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePART IV Accounting for a Merchandising Business\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 13. \u003c\/b\u003e\u003cb\u003eMERCHANDISE INVENTORY 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 320\u003c\/p\u003e \u003cp\u003e13.1 Cost of Goods Sold 320\u003c\/p\u003e \u003cp\u003e13.1.1 Perpetual and Periodic Inventory 320\u003c\/p\u003e \u003cp\u003e13.1.2 Net Purchases 322\u003c\/p\u003e \u003cp\u003e13.1.3 Recording Initial Cost 323\u003c\/p\u003e \u003cp\u003eSelf-Check 328\u003c\/p\u003e \u003cp\u003e13.2 Inventory Cost Flow 328\u003c\/p\u003e \u003cp\u003e13.2.1 Determining the Value of Ending Inventory 329\u003c\/p\u003e \u003cp\u003e13.2.2 Inventory Valuation Methods 329\u003c\/p\u003e \u003cp\u003e13.2.3 Choosing the Best Method 331\u003c\/p\u003e \u003cp\u003e13.2.4 Comparing the Methods 331\u003c\/p\u003e \u003cp\u003eSelf-Check 334\u003c\/p\u003e \u003cp\u003e13.3 Lower of Cost or Market 334\u003c\/p\u003e \u003cp\u003eSelf-Check 335\u003c\/p\u003e \u003cp\u003eSummary 336\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 337\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 340\u003c\/p\u003e \u003cp\u003eKey Terms 341\u003c\/p\u003e \u003cp\u003eReferences 343\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 14. \u003c\/b\u003e\u003cb\u003eADJUSTMENTS AND THE WORKSHEET FOR A MERCHANDISING BUSINESS 345\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 346\u003c\/p\u003e \u003cp\u003e14.1 Setting Up the Worksheet for a Merchandising Business 346\u003c\/p\u003e \u003cp\u003eSelf-Check 349\u003c\/p\u003e \u003cp\u003e14.2 Inventory Adjustment 349\u003c\/p\u003e \u003cp\u003eSelf-Check 350\u003c\/p\u003e \u003cp\u003e14.3 Adjustment to Record Expenses 350\u003c\/p\u003e \u003cp\u003e14.3.1 Allowance for Bad Debt 351\u003c\/p\u003e \u003cp\u003e14.3.2 Accrued Payroll Expenses 352\u003c\/p\u003e \u003cp\u003e14.3.3 Depreciation Adjustment 354\u003c\/p\u003e \u003cp\u003e14.3.4 Adjustment for Prepaid Expenses 354\u003c\/p\u003e \u003cp\u003eSelf-Check 356\u003c\/p\u003e \u003cp\u003eSummary 356\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 358\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 361\u003c\/p\u003e \u003cp\u003eKey Terms 362\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCHAPTER 15. \u003c\/b\u003e\u003cb\u003eFINANCIAL STATEMENTS AND THE CLOSING PROCESS FOR A MERCHANDISING BUSINESS 363\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 364\u003c\/p\u003e \u003cp\u003e15.1 Financial Statements for a Merchandising Business 364\u003c\/p\u003e \u003cp\u003e15.1.1 Income Statement 364\u003c\/p\u003e \u003cp\u003e15.1.2 Statement of Owner’s Equity 367\u003c\/p\u003e \u003cp\u003e15.1.3 Balance Sheet 369\u003c\/p\u003e \u003cp\u003eSelf-Check 370\u003c\/p\u003e \u003cp\u003e15.2 Closing Entries for a Merchandising Business 371\u003c\/p\u003e \u003cp\u003eSelf-Check 374\u003c\/p\u003e \u003cp\u003e15.3 Other Year-End Tasks: Form 1099 374\u003c\/p\u003e \u003cp\u003eSelf-Check 378\u003c\/p\u003e \u003cp\u003eSummary 379\u003c\/p\u003e \u003cp\u003eAssess Your Understanding 380\u003c\/p\u003e \u003cp\u003eBe a Small Business Accountant 382\u003c\/p\u003e \u003cp\u003eKey Terms 383\u003c\/p\u003e \u003cp\u003eReferences 384\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX A: \u003c\/b\u003e\u003cb\u003eDEPRECIATION 385\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA.1 Depreciation for Accounting Purposes 385\u003c\/p\u003e \u003cp\u003eA.1.1 Knowing What You Can and Can’t Depreciate 385\u003c\/p\u003e \u003cp\u003eA.1.2 Figuring Out the Useful Life of a Fixed Asset 386\u003c\/p\u003e \u003cp\u003eA.1.3 Delving into Cost Basis 387\u003c\/p\u003e \u003cp\u003eA.1.4 Depreciation Methods 387\u003c\/p\u003e \u003cp\u003eA.1.5 Using QuickBooks to Calculate Depreciation 389\u003c\/p\u003e \u003cp\u003eA.2 Depreciation for Income Tax Purposes 389\u003c\/p\u003e \u003cp\u003eA.2.1 Section 179 389\u003c\/p\u003e \u003cp\u003eA.2.2 MACRS 390\u003c\/p\u003e \u003cp\u003eA.3 Setting Up Depreciation Schedules 390\u003c\/p\u003e \u003cp\u003eA.4 Recording Depreciation Expenses 391\u003c\/p\u003e \u003cp\u003e\u003cb\u003eAPPENDIX B: \u003c\/b\u003e\u003cb\u003eINCOME TAX 392\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eB.1 Tax Reporting for Sole Proprietors 392\u003c\/p\u003e \u003cp\u003eB.2 Filing Tax Forms for Partnerships 392\u003c\/p\u003e \u003cp\u003eB.3 Filing Tax Forms for Corporations 393\u003c\/p\u003e \u003cp\u003eB.3.1 Reporting for an S Corporation 393\u003c\/p\u003e \u003cp\u003eB.3.2 Reporting for a C Corporation 393\u003c\/p\u003e \u003cp\u003eB.4 Tax Reporting for Limited Liability Companies 393\u003c\/p\u003e \u003cp\u003eB.5 Professional Tax Services 393\u003c\/p\u003e \u003cp\u003eGlossary 395\u003c\/p\u003e \u003cp\u003eIndex 407\u003c\/p\u003e  \u003cp\u003e\u003cstrong\u003eLita Epstein\u003c\/strong\u003e excels at translating complex financial and political topics critical to people's everyday life. Building on her personal experience as a press secretary for a U.S. Congressman and her analytical skills developed as she completed her MBA from Emory University's Goizueta Business School, Lita helps people explore difficult financial and political issues.\u003cbr\u003eShe has worked as a newspaper reporter and magazine editor. After getting her MBA degree, she served as associate director of development for President Jimmy Carter's international programs at The Carter Center. She is currently in the process of completing work toward her Certified Financial Planner designation and is a member of the Financial Planning Association.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47990492430565,"sku":"NP9780470198636","price":79.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9780470198636.jpg?v=1761788045","url":"https:\/\/k12savings.com\/products\/wiley-pathways-small-business-accounting-isbn-9780470198636","provider":"K12savings","version":"1.0","type":"link"}