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Date: Score:

Problem #3 Statement of Comprehensive Income

Direction: Answer the following problems with correct solution. Write your solution in a one
whole short bond paper.

1. At the end of the first month of operations for Juan’s Service Company, the business had the
following accounts: Cash, Php19, 000; Prepaid Rent, Php500; Equipment, Php5, 000 and
Accounts Payable Php2, 000. By the end of the month, Jackson's had earned Php20, 000 of
Revenues, Php1, 000 of Utilities Expenses and Php1,500 of Salaries Expenses. Calculate the
net income to be reported by the company for this first month.

2. During October, a sari-sari store had the following transactions involving revenue and
expenses. Did the firm earn a net income or incur a net loss for the period? What was the
amount?
Paid Php1, 200 for rent
Provided services for Php2, 750 in cash
Paid Php250 for telephone service
Provided services for Php1, 900 on credit
Paid salaries of Php1, 675 to employees
Paid Php350 for office cleaning service

3. Compute for the Cost of Goods Sold using the following:

Sales – 15,000
Purchases – 2,000
Purchase returns – 200
Purchase discounts – 200
Freight in – 100
Beginning inventory – 1,000
Ending inventory – 500

4. Prepare a single-step Statement of Comprehensive Income using the following:

Revenues – 20,000
Rent expense – 3,000
Salaries expense – 4,000
Utilities expense – 2,000

NOTE: Learners can use any business name and the end of the current year for the heading.

5. Prepare a multi-step Statement of Comprehensive Income using the following:

 Sales – 20,000
Cost of Goods Sold – 10,000
General and administrative expenses – 4,000
Selling expenses – 2,000

NOTE: Learners can use any business name and the end of the current year for the heading.

6. Nena had the following expense accounts for the year ended December 31, 2016:
A. Salaries of admin personnel
B. Salaries of janitors
C. Salaries of sales agents
D. Utilities of home office
E. Rent of office building
F. Depreciation of office equipment
G. Depreciation of delivery van
H. Advertising
I. Cost of merchandise sold during the year

Identify if the account is part of the general and administrative expenses or selling expenses