Elle Company

Income Statement
For the Year Ended December 31, 201A

Sales ₱ 475,000.00
Less: Sales Returns and Allowances ₱ 5,000.00
Net Sales ₱ 470,000.00

Less: Cost of Sales

Merchandise Inventory, Jan 1 ₱ 57,000.00
Add: Purchases ₱ 220,000.00
Less: Purchases Returns and Allowances ₱ 3,000.00 ₱ 217,000.00

Total Goods Available for Sales ₱ 274,000.00

Less: Merchandise Inventory, Dec 31 ₱ 60,000.00 ₱ 214,000.00

Gross Profit ₱ 256,000.00

Less: Selling Expenses

Advetising Expense ₱ 10,000.00
Sales Salaries ₱ 30,000.00
Commission Expense ₱ 15,000.00
Miscellaneous Selling Expense ₱ 3,000.00 ₱ 58,000.00
Administrative Expenses
Rent Expense ₱ 15,000.00
Office Salaries ₱ 20,000.00
Light and Water ₱ 2,000.00
Insurance Expense ₱ 1,000.00
Taxes and Licenses ₱ 5,000.00
Interest Expense ₱ 4,000.00
Uncollectible Accounts Expense ₱ 20,000.00 ₱ 67,000.00
Total Selling and Administrative Expenses ₱ 125,000.00

Net Income ₱ 131,000.00

 Elle Company
Income Statement
For the Year Ended December 31, 201A

Sales ₱ 895,000.00

Less: Cost of Goods Sold

Merchandise Inventory, Jan 1 ₱ 126,000.00
Add: Purchases ₱ 466,250.00
Total Goods Available for Sales ₱ 592,250.00
Less: Merchandise Inventory, Dec 31 ₱ 189,500.00
₱ 402,750.00
Gross Profit ₱ 492,250.00

Less: Selling Expenses ₱ 161,100.00

Administrative Expenses ₱ 128,880.00
₱ 289,980.00

Net Income ₱ 202,270.00

A. Net income - 201B P840,000
Novela Bookstore
Statement of Changes In Owner's Equity
For the Year Ended December 31, 201B

Ronel Novela, Capital, January, 1 201B 1,500,000.00

Add: Net Income for 201B 840,000.00
Additional Investment 450,000.00 1,290,000.00
Subtotal 2,790,000.00
Less: Withdrawals of Proprietor 120,000.00
Ronel Novela, Capital, December, 1 201B 2,670,000.00

B. Net income - 201B (P320,000)

Novela Bookstore
Statement of Changes In Owner's Equity
For the Year Ended December 31, 201B

Ronel Novela, Capital, January, 1 201B 1,500,000.00

Additional Investment 450,000.00
Subtotal 1,950,000.00
Less: Net Loss for 201B 320,000.00
Withdrawals of Proprietor 120,000.00 440,000.00
Ronel Novela, Capital, December, 1 201B 1,510,000.00