Subject : FUNDAMENTALS OF Topic: Statement of

ABM 2 Comprehensive income

Teacher: JESSEL M. BARROS WEEK 4

NO.

1. Happy Selling Company’s salaries to sales agents amounted to Php 10,000. Salaries of
accountants amounted to Php 20,000. No other expenses were incurred. How much is
the company’s general and administrative expense?

2. Happy Selling’s beginning inventory amounted to 250,000. Net purchases amounted to

70,000. Freight In totaled 15,000. Compute for the company’s cost of goods available for
sale.

3. Happy Selling’s Sales amounted to Php 500,000. Sales returns and sales discounts
amounted to Php 30,000 and Php 10,000 respectively. Purchases of the company totaled
Php 100,000 while purchase returns and purchase discounts amounted to Php 20,000
and Php 10,000 respectively. How much is the company’s Net Sales? Net Purchases?

4. Company’s Cost of Goods Sold amounted to Php 285,000. Net cost of purchases totaled Php
85,000. Beginning inventory amounted to Php 250,000. Sales amounted to Php 500,000.
Compute for the company’s Ending Inventory.

5. Gross profit of Happy Selling amounted to Php 175,000. Beginning Inventory totaled Php
250,000. Ending Inventory amounted to Php 50,000 while Net Cost of Purchases totaled Php
85,000. Compute for Happy’s Net Sales.

6. 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.
7. 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.