Chapter 5, Problem 5.22E

To determine

Periodic System

It is a system in which the inventory is updated in the accounting records on a periodic basis such as at the end of each month, quarter or year. In other words, it is an accounting method which is used to determine the amount of inventory at the end of each accounting period

Worksheet

A worksheet is the summarized form of accounting information which is made in order to ensure that the accounts are made properly.

Adjusted Trial Balance

This statement is prepared to show all the year-end adjusted account balances of a business. The balances are shown in separate columns as debit and credit.

Income Statement

Income Statement is prepared by all the companies by enumerating all the expenses and revenues in the statement to calculate the resulting difference of Net Profit or Net Loss.

Balance sheet

The balance sheet of a Company is the one of the most important financial statements because it shows the financial position of the Company. Main components of balance sheet are assets, liabilities and stockholder’s equity.

To Prepare: Worksheet of B. M Company.