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FABM2 - Quiz

Daniel R. Aguinaldo National High School you a guide for making a statement of comprehensive income

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labayanjoshua
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22 views

FABM2 - Quiz

Daniel R. Aguinaldo National High School you a guide for making a statement of comprehensive income

Uploaded by

labayanjoshua
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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FUNDAMENTAL OF ACCOUNTING BUSINESS AND MANAGEMENT

Long test
Name : ______________________
Grade & Section : _________Date:_____

Set A

Case I The following are the accounts of ARIES Merchandising for December 31, 2021

Sales 4,000,000
Sales Expense 432,200
Supplies Expense 145,200
Depreciation Expense 98,300
Utilities Expense 162,300
Insurance Expense 53,200
Rent Expense 243,660
Beg. Inventory 6,250
Purchases 1,350,000
Freight in 20,305
Salaries Expense 556,400
Ending Inventory 12,500
Sales Discount 8,750
Interest Income 5,450
Purchase Discount 5,430
Purchase Return and Allowance 3,250
Rent Income 12,000
Sales Return & Allowance 32,200
Miscellaneous Expense 15,340
Taxes and Licenses expense 43,200

With additional transaction incurred during the year.

1 Accordingly 17% of rent ,depreciation and ultility expenses pertain to the sales
office while the rest pertain to corporate office.

2 -The company declared at the end of the year a loss on sales of equipment of 2,300.
and discount lost of P 800.00

3 -Interest expense P 1,230.00 incurred from the bank loan .

4 -Provisions for income tax were computed at 112,560.00 for this year's net income

You are employed by the entity as bookkeper in its first year of operations.
Prepare the necessary Comprehensive Statement of Income .
1. Net Income
2. Net Income before tax
3. Net Income after tax
2. Prepare a statement of comprehensive income
Set A Answer

Note : 1 Net Sales


Sales 4,000,000
Less: Sales discount 8,750
###
Sales Return & Allowance 32,200 40,950
Net Sales 3,959,050

Note 2 Net Purchase

Purchase 1,350,000
Add Freight in 20,305
Less Purchase Discount 5,430
###
Purchase Return and Allowance 3,250 8,680
Net Purchases 1,361,625

NOTE 3 Cost of Sales

Beg. Inventory 1/1/21 6,250


Add : Net purchases (Note 2 ) 1,361,625
Total Good Available for sale 1,367,875
Less : Inventory end 12/31/21 12,500
Cost of Sales 1,355,375

Note 4 Other Income

Interest Income 5,450


Rent Income 12,000
17,450

Determining the Selling Expense

Nature Total Selling Exp. 17% Adminstrative 83%


Rent Expense 243,660 41,422
### 202,238
Depreciation Expense 98,300 16,711
### 81,589
Utilities Expense 162,300 27,591
### 134,709
504,260 85,724
### 418,536

Note 5 Selling Expense

Sales Expense 432,200


Rent Expense 41,422
Utilities 27,591
Depreciation 16,711
Selling Expense 517,924
Note 6 Adminstrative Expense
Salaries Expense 556,400
Supplies Expense 145,200
Insurance Expense 53,200
Rent Expense 202,238
Depreciation Expense 81,589
Utilities Expense 134,709
Taxes and Licenses expense 43,200
Miscellaneous Expense 15,340
Adminstrative Expense 1,231,875.80

Note 7 Other Expenses


Loss sales of Equipment 2,300
Discount lost 800
3,100

Note 8 Finance Cost


Interest Expense 1,230

Aries Merchandising
Statement of Comprehensive Income
For the year ended December 31, 2021

Note
Net Sales 1 3,959,050.00
Less :Cost of sales 3 1,355,375.00
Gross Profit 2,603,675.00
Less : Operating Expenses
Selling Expense 5 517,924.20
###
Adminstrative Expense 6 1,231,875.80
###
Other Expense 7 3,100.00
Finance Cost 8 1,230.00 1,754,130.00
Net Income 849,545
Add: Other Income 4 17,450
Net income before tax 866,995
Less : Provision from Income tax 112,560
Net Income after tax 754,435

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