FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2

Name: DONACAO, PAUL ROBERT B. Grade and Section: 12- GALAO

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I E A O E

N X L G S V

C O M P R E H E N S I V E
O E S N N

M N E U

E S R E

E A
M U L
T I P L E
S

LOOKING BACK TO YOUR LESSON

SOLUTION:
1. P 5,000
Income or Loss= Revenue minus Expense
2. (P 25,000)
3. P 20,000 1. 20,000 – 15,000 = 5,000
4. (P 44,000) 2. 75,000 – 100,000 = -25,000
5. (P112, 000) 3. 85,000 – 65,000 = 20,000
4. 56,000 – 100,000 = -44, 000
5. 88,000 – 200,000 = -112,000
ACTIVITY 1

1. GENERAL
2. GENERAL
3. SELLING
4. GENERAL
5. SELLING
6. GENERAL
7. SELLING
8. SELLING
9. SELLING

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 FUNDAMENTALS OF ACCOUNTANCY, BUSINESS, AND MANAGEMENT 2

10. SELLING

ACTIVITY 2

1. P 20,000 since accountant is for operating and included in non-selling expenses.

2. COGAS= 250,000 + 70,000+ 15,000
= P 335,000
3. Net Purchase= 100,000 – (20,000+10,000)
= P 70,000
4. Ending Inventory= 250,000 + 85,000 – 235,000
= P 100,000
5. COGS= 300,000 – 175,000
= P 125,000

ACTIVITY 3

Tin’s Ready to Wear Company

Statement of Comprehensive Income
For the Year Ended December 31, 2019
Net Sales P 75, 000
Cost of Sales (30,000)
Gross Profit P 45,000

General and Administrative Expenses (12,000)

Selling Expenses (25, 000)
Net Income P 8,000

CHECK YOUR UNDERSTANDING

____________________
Statement of Comprehensive Income
For the Year Ended December 31, _____
Net Sales P 73, 000
Cost of Sales (20,000)
Gross Profit P 53,000

General and Administrative Expenses (12,000)

Selling Expenses (4, 000)
Net Income P 37,000

POST TEST

1. A
2. C
3. B
4. A

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5. A
6. C
7. D
8. B

REFLECTIVE LEARNING SHEET

The merchandising or trading business that increased their sales during COVID-19: drugstore,
food businesses, gadget store, telecommunication, and supermarkets.

To increase our income yet: As a millennial, we can keep up with those online sellers. So, we
can generate another income besides our business. Since it is related to the agricultural industry, it
affects the flow of cash-in, which resulted in a lower income. We can take a gamble on the food business
and sell it online since it is in demand in our community. In that case, many consumers may buy and try
our products. Therefore, we can regain that income in our business, even amidst this pandemic.

WORKSHEET 3

1. Selling
2. General
3. Selling
4. Selling
5. General
6. Selling
7. Selling
8. General
9. Selling
10. General

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ADDITIONAL ACTIVITY

1. Determine the following:

a. Net Sales
764, 985 –(13,300 + 5455)
= P 746,230
b. Net Purchases
459,990 –(8,200 + 5,465)
= P 446,325
c. Cost of Goods Sold
480,960 – 20,765
= P 460,195
d. Bad debts expense
746,230 * .04
= P 29,849.20

2. Nature of Expense

ABC Company
Statement of Comprehensive Income
For the Year Ended December 31, 2019
Net Sales P 746, 230.00
Expenses
Cost of Goods Sold 460,195.00
Amortization Expense 10,000.00
Depreciation Expense 25,000.00
Salaries Expense 80,000.00
Utilities Expense 55,000.00
Advertising Expense 35,000.00
Rent Expense 60,000.00
Interest Expense 5,677.00
Bad Debts Expense 29,849.20 (P760,721.20)
Other Income
Interest Income 5,444.00
Gain on Sale of PPE 5,465.00 P10,909.00
NET LOSS (P 3,582.20)

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3. Function of Expense
a. G&A Depreciation Expense = 5,000
b. Amortization Expense to G&A
c. 80,000*.4 = 32,000 to selling
d. 55,000*.35 = 19,250 to selling
e. Rent Expense 20,000 for G&A

ABC Company
Statement of Comprehensive Income
For the Year Ended December 31, 2019
Net Sales P 746,230.00
Cost of Sales (460,195.00)
Gross Profit P 286, 035.00
Operating Expense
General and Administrative Expense
Bad Debts Expense 29, 849.20
Amortization Expense 10,000.00
Salaries Expense 48,000.00
Utilities Expense 35,750.00
Rent Expense 20,000.00
Depreciation Expense 5,000.00 (148,599.20)
Selling Expense
Advertising Expense 35,000.00
Depreciation Expense 20,000.00
Salaries Expense 32,000.00
Utilities Expense 19,250.00
Rent Expense 40,000.00 (146,250.00)
Total Operating Expense (294,849.20)
Operating Loss (P 8,814.20)
Non-operating or Others
Interest Income 5,444.00
Gain on Sale of PPE 5,465.00
Interest Expense (5,677.00)
Total Non-operating P 5,232.00
Net Loss (P 3,582.20)

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