Name: Maria Teresa O.

Aparre
Teaching Date: September 12-16, 2022 (Continuation)
Subject: Fundamentals of Accounting 2
Grade Level: Grade – 12 Camella
Method: Semi Detailed Lesson Plan

I. OBJECTIVES: At the end of the lesson 80% of the students should be able to:

a. Identify the elements of the SCI and describe each of these items for a service
business and a merchandising business. ABM_FABM12-Ic-d-5

b. Prepare an SCI for a merchandising business using the multistep approach.

ABM_FABM12-Ic-d-7

II. SUBJECT MATTER

Topic: Statement of Comprehensive Income ( SCI)

Reference:

Textbook: Salazar, D.R (2017) Fundamentals of Accountancy, Business and

Management 2

Websites: https://edge.pse.com.ph/openDiscViewer.do

Materials, Equipment and Resources:

 Textbook
 Multimedia Presentation
 Worksheet
 Chalk

III. PROCEDURE

A. Preliminary Activities

 Prayer
 Greetings
 Checking of Attendance
 B. Review

The teacher will have a review on the previous discussion which is the Statement
of Financial Position.

C. Motivation

(The teacher will show a video clip about how to budget money and will let the
students to take down their monthly allowance and write the amount spend on
food, transportation, phone load, etc. then deduct the amount spend from the
amount of allowance)

Ask: What is your observation about the video clip?

Emphasize: The class will associate allowance with revenue and spending
with expenses with the net amount as net income.

D. Discussion

Statement of Comprehensive Income – consist of all revenues, gains and

losses that cause the equity account to change at the end of the accounting
period. They are nominal accounts or temporary accounts because at the end of
the accounting period, balances under these accounts are transferred to the
Capital Account, thus having only temporary amounts and resulting to zero as
the balances at the beginning of the following year.

THE ELEMENTS OF COMREHENSIVE INCOME are as follows:

1. Heading is compose of company name, the SCI title and the

date starts with for the period ended (date)
2. Income are increases in economic benefits during the period in
the form of inflows or enhancement of assets or decreases of
liabilities that result in increases in equity, other than those relating
to investments by the business owners.
3. Expenses are decreases in economic benefits during the period
in the form of outflows or depletions of assets or increases of
liabilities that result in decreases in equity, other than those
relating to distributions to the business owners.
4. Net Income/(Net Loss) is the result of operation. If the income is
greater than the expenses, then the result is net income while if
the expenses are greater than income, then the result is net
loss.
 Under the nature of expense method, expenses are
presented according to their nature (for example, depreciation,
purchase of materials, transport costs, employee benefits and
advertising costs) and are not reallocated among their functions
within the entity. This method is easy to apply because no
reallocation of expenses is necessary.

The examples of comprehensive income are gains or losses

in hedging derivatives, translation of foreign currency exchange rate
adjustments and unrealized gains and losses on postretirement
benefits. The total income statement shows the profit or loss of the
company for the year.

If the total revenue > total expense ----the result is net income

If the total revenue < total expenses ---the result is net loss

There are two forms of the Income Statement

 Single Step form (Natural Form)

-This form is simply grouped together all the revenues and all
the expenses and the difference is either a net income or a
net loss

 Multi-step form (Functional Form)

-This form is the traditional and common form of the income

statement because it shows the different classification of the
income statement elements (the net sales, cost of goods
sold, the gross profit, the operating income or loss and the
net income or loss)

Format of a single-step form:

Name of the Company

Statement of Income
For the period (year) ended December 31,2021

Revenues:
Net Sales xxxx
Other Income xxxx
Total Revenues xxxx
Expenses:
Cost of Sales xxxx
Selling and marketing expenses xxxx
General and administrative expenses xxxx
Other Expenses xxxx
Total Expenses xxxx
Net Income(loss) xxxx
====

A SCI shows expenses by their nature is referred to as Single-Step

Approach

Parlor Co.
Statement of Comprehensive

Income For the period ended

December 31, 2019

Income Php5,000.00
Expenses (1,500.00)
Profit for the Year Php3,500.00
Other Comprehensive Income 500.00
Total Net Income Php4,000.00
==========

Shown below is the format of statement of comprehensive

income with proper label of its elements:

TMAM TRANSPORT HEADING

STATEMENT OF COMPREHENSIVE INCOME
For the period January 31, 2020
 Service Revenue Php50,000.00 REVENUE

Expenses

Salaries Expense Php15,000.00

EXPENSES
Rent Expense 10,000.00
Utilities Expense 5,000.00 30,000.00

Net Income/(Net Loss) Php20,000.00

Add Other Comprehensive Income 4,000.00
Total Net Income Php24,000.00 NET INCOME
==========

E. Application

Direction: Solve for the unknown (Remember the formula Income minus
Expenses plus Comprehensive Income is equal to Net Income or Net Loss)

1. Service Income ???

Expenses (Php10,000.00)
Net Income/(Net Loss) Php25,000.00

2. Service Income Php35,000.00

Expenses (Php15,000.00)
Net Income/(Net Loss) Php20,000.00
Other Comprehensive Income Php5,000.00
Comprehensive Income ???

3. Service Income Php65,000

Expenses ???
Net Income/(Net Loss) Php18,000
 Other Comprehensive Income 2,000
Comprehensive Income Php20,000

4. Service Income Php58,000

Expenses (Php38,0000)
Net Income/(Net Loss) ???
Other Comprehensive Income Php10,000
Comprehensive Income Php30,000

5. Service Income Php80,000

Expenses (Php120,000)
Net Income/(Net Loss)

F. Evaluation

Directions: Analyze the transactions of Tiny Bubbles Co, put

an emoji smiley if it is part in the preparation of Statement of
Comprehensive Income and NA if it is not part in the preparation
of SCI.
Tiny Bubbles, a parlor owner, asks you to prepare her
statement of comprehensive income for the month of August
with the following transactions.
1. Her company has cash deposited in a bank account
amounting to P50,000 as her initial capital
2. She bought parlor furniture set amounting to Php75,000.00
by paying 20% down and the balance in 12 monthly
installments.
3. Supplies expense for the month is Php20,000.00
4. She paid two month’s rent amounting to Php24,000.00
5. Her total income for the month of August is Php120, 000.00 cash.
6. She paid one staff for Php5,000.00 a month
7. The business paid Php4,500.00 for the light, water, and internet connection.
8. She has trade recievables amounting to Php25,000.00 for services
rendered.
9. She had a loan from the bank amounting to Php100,000.00 to be paid in 5
 years.
10. Paid transportation expenses amounting to Php2,500.00.

Activity 2
Directions: Prepare a Statement of Comprehensive Income for the
following independent transactions. Use your surname as your company
name.

1. Service Revenue Php95,000.00; Salaries Expense Php5,000.00;

Transportation Expense Php15,000.00; Rent Expense Php20,000.00;
Utilities Expense Pph3,000.00; Other Comprehensive Income is
Php8,000.00

2. Salaries Expense Php25,000.00; Transportation Expense

Php1,000.00; Rent Expense Php10,000.00; Utilities Expense
Php5,000.00; and Service Revenue is Php40,000.00.

G. Assignment

Direction: Calculate the net income to be reported by the company.

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.
1. At the end of the 1st month, Juan’s Services Company, the business had the
following accounts:

Cash Php19,000.00
Prepaid Rent Php 500.00
Equipment Php 5,000.00
Accounts Payable Php 2,000.00

At the end of the month, it earned Php20,000.00 revenues, Php1,000.00 of

Utilities Expense and Php1,500.00 Salaries Expense.

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 rent Php1,200.00

Paid telephone service Php250.00
Paid Salaries Php1,675 to employees
Provided services for Php2,750.00 cash
Provided services for Php1,900.00 on credit
Paid Php350 for office cleaning service

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

Revenues 20,000.00
Salaries Expense 4,000.00
Rent Expense 3,000.00
Utilities expense 2,000.00
 Prepared by: Checked by:

Maria Teresa O. Aparre Ludabella Aurora S. Sanes

Fundamentals of Accounting 2 Teacher, T2-SHS MT-II