QUEZON MEMORIAL ACADEMY

Progreso St., Poblacion West, Umingan, Pangasinan

FUNDAMENTALS OF ABM 2
Week 3
(Grade 12 - ABM)

I. TOPIC

STATEMENT OF COMPREHENSIVE INCOME

II. OBJECTIVES
In this module, student will be able to:
a) understand the purpose of the Statement of Comprehensive Income (SCI);
b) identify the elements of the Statement of Comprehensive Income (SCI);and
c) describe the nature of the accounts reported on the Statement of Comprehensive Income (SCI);
III. ANTICIPATORY GUIDE
1. What is the Statement of Comprehensive income?
2. What are the elements of the Statement of Comprehensive income?

IV. LEARNING CONTENT

STATEMENT OF COMPREHENSIVE INCOME
- The SCI is a statement that reports the results of operations of the business for one accounting
period. This statement contains the following information:
a. Revenue generated by operating business;
b. Costs spent to generate the revenue; and
c. Income, which is the excess of revenue over costs.

ELEMENTS OF THE STATEMENT OF COMPREHENSIVE INCOME

 REVENUE
- Service Income
The Service Income Account is generally used to describe the revenue derived from
rendering services. A more specific account name may be used to identify the services
rendered such as Rental Income, Professional Fee and Tuition Fee Revenue.
- Sales
The Sales Revenue account is generally used to describe revenue derived from selling of
goods. A more specific account name may be used to identify the goods sold such as Office
Supplies sales, Book Sales, Food Sales, etc.
-
 EXPENSES
- Cost of Goods Sold (Cost of Sales)
This is an account used by companies that sells goods instead of services. For trading
operations, Cost of Sales collects the cost of the merchandise sold.
- Operating Expenses
Operating expenses refer to all other expenses related to the operation of the business,
other than cost of sales.

- Other Expenses and Other Income

Losses and other expenses as well as gains and other income are reported after the
operating sections of the SCI.
VI. ACTIVITIES
1. Twinkle-Twinkle Pre-School collected tuition fee of ₱1,250,000 and ₱1,455,000 for the school years
20X1-20X2 and 20X2-20X3, respectively. The school closed in April and May. Determine the tuition
fee revenue to be reported on SCI for the calendar year 20X2.

Answer:

2. Juana Dela Cruz, owner of Friendly Convenient Store, sold 3 boxes of ballpoint pens to Mrs. Susan
Gonzales on account at price of ₱150 per box or ₱15 per pen. Juana gave Mrs. Gonzales two weeks to
pay the account. Moreover, Juana told Mrs. Gonzales that she will deduct 2% discount if she pays within
a week.
Mrs. Gonzales returned one week later. She returned five pens and took advantage of the discount.
Determine the amount of Sales, Sales return, Sales Discount and Net Sales from the transaction with
Mrs. Gonzales.

Answer:

3. Juana Dela Cruz, owner of Friendly Convenience Store, asked for your help to determine the cost of
sales of her store. This is the first year of operations for Juana’s store. She provided the following data to
you.

Purchases (based on suppliers’ receipts) ₱55,344

Freight-In (based on receipts of taxi fares she incurred when she shops 430
for merchandise at Divisoria)
Purchase Returns 760

Based on the inventory count taken at the last day of the year, the ending
inventory valued at ₱2,320. How much is cost of sales?
Answer:

VII. REFLECTION
Write down your most essential lessons and reflection about the topic.

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REFERENCE: Fundamentals of Accountancy, Business, and Management

Author: Dani Rose C. Salazar
Published by Rex Book Store

Prepared by: Johmar E. Abuan