ISCool Merchandise

Statement of comprehensive income

For the month ended December 31,2018

Net Sales P84,150

LESS: Cost of goods Sold (50,900)
Gross profit 33,250

Distribution Cost (27,540)

Administrative Expense (40,000)
Finance cost -
Net loss (34,290)

Net sales

Net sales
Sales P105,000
LESS: Sales return and allowance (20,000)
Sales discount (850)
Net Sales 84,150

Cost of good solve

Cost of goods Sold

Purchases 340,500
ADD: Freight in 4,400
LESS: Purchase return allowances (40,000)
Purchase discount (4,000)
Net purchases 300,900
LESS: Ending Inventory (250,000)
Cost of goods sold 50,900

*One-half of rent and utilities expense were used by non-sales department. One-fourth of the
salaries were allocated to non-department
Distribution cost

Distribution cost
Utilities Expense 1,500
Rent Expense 12,500
Salaries Expense 7,500
Advertising Expense 5,000
Freight-out 1,040
Distribution cost 27,540

Administrative expense

Administrative Expense
Utilities Expense 1,500
Rent Expense 12,500
Salaries Expense 2,500
Depreciation Expense 7,500
Bad Debt Expense 6,000
Office Supplies Expense 2,000
Miscellaneous Expense 8,000
Administrative Expense 40,000
 ISCool Merchandise
Statement of Changes in Equity
For the month ended December 31,2018

Beginning Balance, December 1,2018 P-0-

ADD: Initial contribution 500,000
LESS: Net Lost (34,290)
Drawing (20,000)
Ending balance, December 21,2018 P445,710
 ISCool Merchandise
Statement of Cash Flow
For the month ended December 31,2018

Cash flow from the operating activities

Net loss (P34,290)
ADD: depreciation expense 7,500
(P26,790)
Checking in working capital
Increase in Accounts receivable-net (P36,500)
Increase in Prepaid Rents (25,000)
Increase In Inventory (250,000)
Increase in Office supplies (3,000)
Increase in Account payable 100,500
Increase in Note payable 18,000
Increase in Salaries payable 10,000
Net cash flow used in operating activities (P212,790)

Cash flow from investing activities

Acquisition of computer equipment (P18,000)
Net cash flow used in investing activities (P18,000)

Cash flow from financing activities

Additional contribution of the owner P500,000
Owner’s Drawings (20,000)
Net cash flow provided by financing activities P480,000

Net change in cash P249,210

Cash and Cash equivalent, December 1, 2018 P-0-
Cash and Cash equivalent, December 31, 2018 P249,210

ISCool Merchandise
 Statement of Financial Position
As of the month ended December 31, 2018

Account Title
ASSET
Current Asset
Cash P249,210
Accounts receivable 42,500
Allowance for Doubtful Account (6,000)
Prepaid Rent 25,000
Merchandise Inventory 250,000
Office supplies 3,000
Total current assets P557,710

Non-current asset
Computer Equipment 18,000
Accumulated depreciation- computer equipment (7,500)
Total non-current asset P10,500

Total Asset P574,210

LIABILITIES AND EQUITY

Current liabilities
Accounts payable P100,500
Notes payable 18,000
Salaries Payable 10,000
Total Liabilities P128,500

Owner’s equity
ISCool, capital 445,710

Total liabilities and equity P574,210