Balance SheetsService CompanyMerchandising CompanyCentury2l RealEstateGeneralMotors CorporationBance SheetBaance SheetYearEndedDecember3l,20xxYearEnded December3l.20xxCurrentassets:Currentassets:$X$XCashCashXXShort-term ivestmentsShort-term ivestmentsAccounts receivable,netAccounts receivable,etPrepaid expensesInventoryPrep aid exp enses
Accounting for InventoryGeneral Motors CorporationGeneral Motors CorporationBalatce Sheet(partal)IncomeStaement(partial)Sales revenueCurrentassets:CashXXX$40.000(2 tucks @ $20,000)Short-termCost of goodssoldXXX30.000iestments(2tucks@$15,000)XXXGrossprofit$10,000AccountsreceivableInventory(l truck$15000@$15,000)XXXPrep aid expenses
Cost of Goods Sold ModelEndingBegiminginventoryinventoryCost ofgoods$20$30availablefor saleCost of$120Purchasesgoods sold$100$90
The Basic Concepts ofInventoryAccounting
The Basic Concepts of Inventory Accounting
Inventory Accounting SystemsPeriodic systems do notkeep acontinuous record ofinventory on handPerpetual systems maintain a ruming recordto show the inventory on hand at all times