BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615
BuyFind

Accounting (Text Only)

26th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781285743615

Solutions

Chapter
Section
Chapter 6, Problem 1DQ
Textbook Problem

What distinguishes a merchandising business from a service business?

Expert Solution
To determine

Merchandising Company and Service Company: A merchandising company generates income by selling goods to its customers. However, a service company produce income by providing services to their customers.

To Differentiate: Between a merchandising business from a service business.

Explanation of Solution

The following table shows the differences between a merchandising businesses from a service business.

Details Merchandising Company Service Company
Revenues

Sales Revenue

Example: Selling price of merchandise inventory.

Service Revenue

Example: Fees received, Rents received, Interest income.

Expenses

Cost of goods sold and operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Only operating expenses

Example: Rent, Office supplies, taxes, Utilities, Insurance.

Table (1)

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Chapter 6 Solutions

Accounting (Text Only)
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Ch. 6 - A Gross profit During the current year,...Ch. 6 - Gross profit During the current year, merchandise...Ch. 6 - Purchases transactions Halibut Company purchased...Ch. 6 - Purchases transactions Hoffman Company purchased...Ch. 6 - Sales transactions Journalize the following...Ch. 6 - Sales transactions Journalize the following...Ch. 6 - Sales transactions Journalize the following...Ch. 6 - Sales transactions Journalize the following...Ch. 6 - Transactions for buyer and seller Sather Co. sold...Ch. 6 - Transactions for buyer and seller Shore Co. sold...Ch. 6 - Inventory shrinkage Castle Furnishings Companys...Ch. 6 - Inventory shrinkage Hahn Flooring Companys...Ch. 6 - Ratio of sales to assets Financial statement data...Ch. 6 - Ratio of sales to assets Financial statement data...Ch. 6 - Determining gross profit During the current year,...Ch. 6 - Determining cost of merchandise sold For a recent...Ch. 6 - Chart of accounts Monet Paints Co. is a newly...Ch. 6 - Purchase-related transactions The Stationery...Ch. 6 - Purchase-related transactions A retailer is...Ch. 6 - Purchase-related transactions The debits and...Ch. 6 - Purchase-related transactions Warwicks Co.. a...Ch. 6 - Purchase-related transactions Journalize entries...Ch. 6 - Sales-related transactions, including the use of...Ch. 6 - Customer returns and allowances Zell Company had...Ch. 6 - Sales-related transactions After the amount due on...Ch. 6 - Sales-related transactions The debits and credits...Ch. 6 - Sales-related transactions Merchandise is sold on...Ch. 6 - Determining amounts to be paid on invoices...Ch. 6 - Sales-related transactions Showcase Co., a...Ch. 6 - Purchase-related transactions Based on the data...Ch. 6 - Sales tax A sale of merchandise on account for...Ch. 6 - Sales tax transactions Journalize the entries to...Ch. 6 - Normal balances of merchandise accounts What is...Ch. 6 - Income statement and accounts for merchandiser For...Ch. 6 - Income statement for merchandiser The following...Ch. 6 - Determining amounts for items omitted from income...Ch. 6 - Multiple-step income statement On October 31,...Ch. 6 - Multiple-step income statement Identify the errors...Ch. 6 - Single-step income statement Summary operating...Ch. 6 - Adjusting entry for merchandise inventory...Ch. 6 - Closing the accounts of a merchandiser From the...Ch. 6 - Closing entries; net income Based on the data...Ch. 6 - Closing entries On July 31, 2016, the balances of...Ch. 6 - Ratio of sales to assets The Home Depot reported...Ch. 6 - Ratio of sales to assets Kroger, a national...Ch. 6 - Rules of debit and credit for periodic inventory...Ch. 6 - Journal entries using the periodic inventory...Ch. 6 - Appendix Identify items missing in determining...Ch. 6 - Appendix Cost of merchandise sold and related...Ch. 6 - Appendix Cost of merchandise sold Based on the...Ch. 6 - Appendix Cost of merchandise sold Based on the...Ch. 6 - Appendix Cost of merchandise sold Identify the...Ch. 6 - Appendix Closing entries using periodic inventory...Ch. 6 - Purchase-related transactions using perpetual...Ch. 6 - Sales-related transactions using perpetual...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Multiple-step income statement and report form of...Ch. 6 - Single-step income statement and account form of...Ch. 6 - Purchase-related transactions using periodic...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Appendix Sales-related and purchase-related...Ch. 6 - Appendix Periodic inventory accounts,...Ch. 6 - Purchase-related transactions using perpetual...Ch. 6 - Sales-related transactions using perpetual...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Multiple-step income statement and report form of...Ch. 6 - Single-step income statement and account form of...Ch. 6 - Purchase-related transactions using periodic...Ch. 6 - Sales-related and purchase-related transactions...Ch. 6 - Appendix Sales -related and purchase-related...Ch. 6 - Appendix Periodic inventory accounts,...Ch. 6 - Palisade Creek Co. is a merchandising business...Ch. 6 - Ethics and professional conduct in business On...Ch. 6 - Purchases discounts and accounts payable Rustic...Ch. 6 - Determining cost of purchase The following is an...

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