Don Jose Ynares Sr.

Memorial National High School

Fundamentals of
Accountancy, Business and
Management
Week 2-3

mary rose t. aragon

Subject Teacher
 Review on SFP

Account Titles

Today's Report Form

Agenda Account Form

Statement of Comprehensive
Income

Parts of SCI

Week 2-3 Single Step SCI

Multi Step SCI

Problem Solving
 Statement of Financial
Position
Also know as Balance sheet
The Report Form and
Account Form
The Report Form and
Account Form

Report form Account form

problem solving #1
assets
are resources owned and
controlled by the firm.

liabilities
are obligations of the firm

equity
the amount of capital invested or
owned by the owner of a company
REPORT FORM
 Account Title
a unique name assigned to an account in an accounting system.

CASH

ACCOUNTS

RECEIVABLE

SUPPLIES

EQUIPMENT

BUILDING

ACCOUNTS

PAYABLES

LOANS PAYABLE

 Account Title
a unique name assigned to an account in an accounting system.

CASH Currency that can be used immediately for transaction (Money)

ACCOUNTS
Money owed to a company by its debtors.
RECEIVABLE

SUPPLIES Items that are expected to be consume (ex. Pens, paper, ink and the like)

A tangible long-term asset that benefits a business for several years of use (ex.
EQUIPMENT
Computer, vehicle, manufacturing machinery)

BUILDING A tangible long-term investment of the company.

ACCOUNTS
Money owed by a company to its creditor.
PAYABLES

LOANS PAYABLE Loans of a company that are not expected to be settled within one year.
 PROBLEM SOLVING #1

SHOW YOUR
ANSWER
Fundamentals of Accountancy, Business and Management 2
 Account Title
a unique name assigned to an account in an accounting system.

CASH Currency that can be used immediately for transaction (Money)

ACCOUNTS
Money owed to a company by its debtors.
RECEIVABLE

SUPPLIES Items that are expected to be consume (ex. Pens, paper, ink and the like)

A tangible long-term asset that benefits a business for several years of use (ex.
EQUIPMENT
Computer, vehicle, manufacturing machinery)

BUILDING A tangible long-term investment of the company.

ACCOUNTS
Money owed by a company to its creditor.
PAYABLES

LOANS PAYABLE Loans of a company that are not expected to be settled within one year.

REPORT FORM
PROBLEM SOLVING #2

ACCOUNT FORM
 a unique name assigned to an account in an accounting system.
CASH IN BANK

ACCOUNT

RECEIVABLE
Account Title
MERCHANDISE

INVENTORIES

PREPAID RENT

FURNITURE AND

FIXTURES

ACCOUNTS

PAYABLES

SSS/PhilHealth/Pag-

Ibig

UTILITIES

 a unique name assigned to an account in an accounting system.

Current balance in checking account, savings account or the like in the name
CASH IN BANK
of company

ACCOUNT
Money owed to a company by its debtors
RECEIVABLE
Account Title
MERCHANDISE The value of goods, including raw materials or finished goods that are ready
INVENTORIES to be sold to customer

PREPAID RENT
Rent that was paid in advance of the rental period

FURNITURE AND Fixed or long-term asset that provides value to the business (ex. Chair,
FIXTURES Cabinet, Desk, Table and the like)

ACCOUNTS Amounts due to lenders or suppliers for goods or services received that have
PAYABLES not yet been paid.

SSS/PhilHealth/Pag- A premium payable (the amount due and payable by the company to
Ibig SSS/PhilHealth/Pag-Ibig)

The cost expense during a given time period of using things such as water,
UTILITIES
electricity and the like.
 Account Title
a unique name assigned to an account in an accounting system.

ACCOUNT FORM
ASSIGNMENT
CASH 150,000
ACCOUNTS RECEIVABLE 50,000
MERCHANDISE INVENTORY 200,000
 Week 2

show your
answer
Fundamentals of Accountancy, Business and Management 2
PROBLEM SOLVING #3

Report form

 PROBLEM SOLVING #4

Account form

POST-TEST
STATEMENT OF
COMPREHENSIVE
INCOME
Lesson 2 (Week 2-3)
 identify the elements of the SCI and
describe each of these items for a
service business and a merchandising
business
prepare an SCI for servisce business

objectives and a merchandising business

prepare an SCI for a service business
using the single-step approach
prepare an SCI for a merchandising
business using the mulit-step
approach
 review
Specific account titles for each of the terms from FABM 1
1. Accrual - is a recognition of "an
2. Revenues - is the increase in
expense already incurred but
economic benefits during the
unpaid" or "revenue but
accounting period.
uncollected".
- Service income,
- accrued expense,
- sales
- accrued income

3. Expenses are decreases in

economic benefits during the 4. Service business
accounting period. - school,
- salaries expense, - repair shop
- depreciation expense

5. Merchandising business
- sari-sari store,
- vegetable vendor
 - also known as the income
statement.
- contains the results of the
STATEMENT OF company's operations for a
COMPREHENSIVE specific period of time
- is called net income if it is a
INCOME net positive result while a net
Lesson 2 loss if it is a net negative result.
- can be prepared for a month,
a quarter or a year.
Statement of Comprehensive Income
A service company provides services in order to generate
SERVICE revenue and the main cost associated with their service is
COMPANY the cost of labor which is presented under the account
Salaries Expense.

in presenting these items on the Statement of Comprehensive Income, a service

company will separate all revenues and expenses (as seen in the single-step format)-

A merchandising company sells goods to customers and

the main cost associated with the activity is the cost of the
MERCHANDISING
COMPANY merchandise which is presented under the line item Cost
of Goods Sold.

merchandising company will present total sales and cost of goods sold on the first
part of the statement which will net to the company's gross profit before presenting
the other expenses which are classified as either administrative expenses or selling
expenses (as seen in the multi-step format)
 Two formats of the SCI

Single-step Multi-step
- all revenues are listed down in one section -there are several steps needed in order
while all expenses are listed in another. to arrive at the company's net income

Net income is computed

using a "single-step"
Total Revenues minus Total Expenses

a. The two are only formats and will yield the same amount of net income/loss
b. Single-step SCI is more commonly used by service companies while multi-step
format is more commonly used by merchandising companies
parts of SCI
SINGLE-STEP
 parts of SCI
MULTI-STEP

PART I. SALES

PART II. CONTRA REVENUE

PART III. COST OF GOODS SOLD

PART IV. GENERAL AND

ADMINISTRATIVE EXPENSES

PART V. SELLING EXPENSES

parts of SCI
MULTI-STEP
parts of SCI
MULTI-STEP
parts of SCI
MULTI-STEP
parts of SCI
MULTI-STEP
 PROBLEM
SOLVING NO. 1
PROBLEM SOLVING NO. 1 (SCI)
Directions: Read and analyze each statement or question carefully and fill each blank with
the correct answer, choose from the box.
 Week 3

show your
answer
Fundamentals of Accountancy, Business and Management 2
PROBLEM SOLVING NO. 1 (SCI)
Directions: Read and analyze each statement or question carefully and fill each blank with
the correct answer, choose from the box.
PROBLEM SOLVING NO. 1 (SCI)
Directions: Read and analyze each statement or question carefully and fill each blank with
the correct answer, choose from the box.
PROBLEM SOLVING NO. 1 (SCI)
Directions: Read and analyze each statement or question carefully and fill each blank with
the correct answer, choose from the box.
 PROBLEM
SOLVING NO. 2
PROBLEM SOLVING NO. 2 (SCI)
Directions: Answer easy, medium, and difficult questions can focus on single-step
approach SCI and the general and administrative expenses and selling expenses parts of
the multi-step SCI. Computation of net income/loss and definition of terms are also part of
the easy questions.
 Week 3

show your
answer
Fundamentals of Accountancy, Business and Management 2
PROBLEM SOLVING NO. 2 (SCI)
 PROBLEM
SOLVING NO. 3
PROBLEM SOLVING NO. 3 (SCI)
Directions: Prepare a single-step Statement of Comprehensive Income using the following:

single-step sci
 Week 3

show your
answer
Fundamentals of Accountancy, Business and Management 2
 PROBLEM SOLVING NO. 3 (SCI)
Directions: Prepare a single-step Statement of Comprehensive Income using the following:

single-step sci
 PROBLEM
SOLVING NO. 4
PROBLEM SOLVING NO. 4 (SCI)
Directions: Prepare a multi-step Statement of Comprehensive Income using the following:

multi-step sci
 Week 3

show your
answer
Fundamentals of Accountancy, Business and Management 2
 PROBLEM SOLVING NO. 4 (SCI)
Directions: Prepare a multi-step Statement of Comprehensive Income using the following:

multi-step sci
 Classification of Accounts

quiz
Fundamentals of Accountancy, Business and Management 2
quiz
 Quiz on Classification of accounts

show your
answer
Fundamentals of Accountancy, Business and Management 2
 PROBLEM
SOLVING NO. 5
PROBLEM SOLVING NO. 5 (SCI)
Directions: Prepare a single step Statement of Comprehensive Income using the following:

Service Revenue Php 100,000.00

Salaries Expense Php 40,000.00
Rent Expense 20,000.00
Depreciation Expense 10,000.00
Utilities Expense 5,000.00
Miscellaneous Expense 1,000.00
 Problem Solving No. 5

show your
answer
Fundamentals of Accountancy, Business and Management 2
 PROBLEM
SOLVING NO. 6
PROBLEM SOLVING NO. 6 (SCI)
Directions: Prepare a multi-step Statement of Comprehensive Income using the following:
Net Sales 460,000.00
Cost of Goods Sold (285,000.00)
Gross Profit ?
General & Administrative Expenses:
Salaries Expense (Php 20,000.00)
Rent Expense (15,000.00)
Depreciation Expense (10,000.00)
Utilities Expense (5,000.00)
Miscellaneous Expense (1,000.00)
Selling Expenses:
Salaries Expense (Php 10,000.00)
Rent Expense (8,000.00)
Depreciation Expense (7,000.00)
Utilities Expense (6,000.00)
 Problem Solving No. 6

show your
answer
Fundamentals of Accountancy, Business and Management 2
POST-TEST
END OF SCI Week 2-3