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Pateros Catholic School

The document provides a trial balance and additional information for Hazel Lee Co. as of December 31, 2019. It asks the student to prepare a statement of comprehensive income using the nature of expense and function of expense methods. The statement of comprehensive income would show total income of ₱1,155,000 with a profit for the year of ₱100,000 and comprehensive income for the year of ₱100,000.

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john nathan
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71 views

Pateros Catholic School

The document provides a trial balance and additional information for Hazel Lee Co. as of December 31, 2019. It asks the student to prepare a statement of comprehensive income using the nature of expense and function of expense methods. The statement of comprehensive income would show total income of ₱1,155,000 with a profit for the year of ₱100,000 and comprehensive income for the year of ₱100,000.

Uploaded by

john nathan
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

PATEROS CATHOLIC SCHOOL

Senior High School Department


F. Imson St., San Pedro, Pateros, Metro Manila
SY 2021-2022

FUNDAMENTALS OF ACCOUNTING 2
Quiz No. 3

Name of Student: John Nathaniel B Ramos


Grade and Section: 12 St John Batist De La Salle

Journalize with explanation the following transactions below in balance sheet Make a
Statement of comprehensive income. Write your answer on the next page. Write your
answers clearly, if not it’s considered incorrect.

The trial balance of Hazel Lee Co. on December 31, 2019 shows the following
information.

Accounts Debit Credit


Sales P1,045,000
Interest Income 80,000
Gains 30,000
Inventory, Beginning P80,000
Purchases 300,000
Freight – In 30,000
Purchase Returns 15,000
Purchase Discounts 27,000
Freight out 25,000
Sales Commission 60,000
Advertising Expense 35,000
Salaries Expense 350,000
Rent Expense 60,000
Depreciation Expense 80,000
Utilities Expense 40,000
Supplies Expense 30,000
Transportation and Travel Expense 25,000
Insurance Expense 10,000
Taxes and Licenses 50,000
Interest Expense 5,000
Miscellaneous Expense 2,000
Loss on the sale of equipment 15,000
Totals P1,197,000 P1,197,000

PCS: MEN AND WOMEN OF NOBLE CHARACTER Page 1


Additional Information:
a. Ending inventory is P100,000
b. Three-Fourths of the Salaries, Rent and depreciation expenses pertains to the
sales department. The sales deportment does not share in the other expenses.
Requirements: Prepare the statement of comprehensive income using the following:
a. Nature of Expense method (single-step approach)
b. Function of Expense Method (multi-step approach)
Note 1 Cost of Sales Note 2 Other Income

Inventory- Beginning ₱80,000 Interest Income ₱80,000

Purchases 300,000 Gains 30,000

Freight- In 30,000 Total other Income ₱110,000

Purchase Return (15,000)


Note 4 Administrative Expense
Purchase Note
Discount (27,000)
3 Distribution Costs Salaries Expense ₱87,500
Freight Note
Inventory
– Out5 Other Expense
– Ending (100,000)
₱25,000
Rent Expense 15,000
Loss on the sale
Total
Sales Cost ofof Sales: 15,000
Commissions ₱268,000
30,000
equipment Depreciation Expense 20,000
Advertising Expense 25,000
Total Other Expense ₱15,000 Utilities Expense 40,000
Salaries Expense 262,500
Supplies Expense 30,000
Rent Expense 45,000
Transportation and 25,000
Depreciation Expense 60,000 Travel Expense

Total Distribution Cost ₱487,500 Insurance Expense 10,000

Taxes and Licenses 50,000

Mics. Expense 2,000

PCS: MEN AND WOMEN OF NOBLE CHARACTER Page 2


Hazel Lee Co. Statement of
Comprehensive Income For the period Hazel Lee Co. Statement of Comprehensive Income For the
ended in December 31,2019 period ended in December 31,2019
Notes Final Amount
Income
Sale ₱1,045,000
Sales ₱1,045,000
Cost of Sale 1 (268,000)
Interest Income 80,000
Gross Profit 777,000
Gains 30,000
Other Income 2 110,000
Total Income ₱1,155,000
Distribution Cost 3 (487,500)
Expenses
Administrative 4 (279,500)
Net Purchases (a) ₱288,000 Expense

Change in Inventory 20,000 Other Expense 5 (15,000)


(b)
Interest Expense (5,000)
Freight- Out 25,000
Profit for the year 100,000
Sales Commissions 60,000
Other Comprehensive -
Advertising Expense 350,000 Income

Rent Expense 60,000 Comprehensive ₱100,000


Income for the year
Depreciation 80,000
Expense

Utilities Expense 40,000

Supplies Expense 30,000

Transportations and 25,000


Travel Expense

Insurance Expense 10,000

Taxes and Licenses 50,000

Misc. Expense 2,000

Loss on the sale of 15,000


Equipment

Total Expense: ₱1,055,000

PCS: MEN AND WOMEN OF NOBLE CHARACTER Page 3


Profit for the year 100,000

Other Comprehensive -
Income

Comprehensive Income ₱100,000


for the year

PCS: MEN AND WOMEN OF NOBLE CHARACTER Page 4

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