FABM2 – STATEMENT OF COMPREHENSIVE INCOME

ASSIGNMENT NO. 1
1. Pan Demic, owner of Pandemic Convenience Store, asked for your help to
determine the cost of sales of his store. This is the first year of operation for
Pandemic Store. He provided the following:
Purchases based on suppliers’ receipts ₱55,344
Freight charges based on receipts of taxi fares
when he shopped at Divisoria 430
Defective items returned to supplier 760
Ending inventory based on physical count 2,320

How much is the cost of sale?

2. At the end of the first month of operations for SAP Service Company, the
business had the following accounts: Cash, ₱43,000; Prepaid Rent, ₱1,500;
Supplies, ₱900; Equipment, ₱15,000, Accounts Payable ₱12,000, and Notes
Payable ₱10,000. By the end of the month, SAP's had earned total Revenue of
₱55,000, incurred ₱7,000 Utilities Expenses and ₱5,500 Salaries Expenses.
Depreciation of the equipment is allocated at ₱500 per month. Monthly rental
is ₱500, and supplies used was ₱300. Calculate the net income to be reported
by the company for this first month.

3. During August, a fitness center had the following transactions involving

revenue and expenses. Provided fitness services for ₱12,750 in
cash and ₱1,900 on credit
Paid rent ₱1,500
Paid salaries to employees ₱4,500
Paid internet and phone services ₱500
Paid sanitizing materials ₱250

Did the fitness center earn a net income or incur a net loss for the period?
What was the amount?