Progress Check

Prepare a Statement of Comprehensive Income using the example in

Activity 3: Instruction
Module 1. You may write your answer and solution in the space
provided below.

BEST SHIRTS
Partial Trial Balance
December 31, 2019
Account Debit Credit
Inventory, 1/1/2019 1,000,000
Sales 8,000,00
Sales Returns and Allowances 15,000
Sales Discounts 50,000
Purchases 3,000,000
Freight – in 80,000
Freight – out 180,000
Purchase discounts 70,000
Purchase returns and 5,000
allowances
Salaries Expense 400,000
Rent Expense 100,000
Utilities Expense 40,000
Permit and Licenses 5,000
Repairs and Maintenance 20,000
Depreciation 45,000

Best Shirts operate as a merchandising concern. Best Shirt Company buys t-shirts from various
supplies and re-sells them at a margin. You are tasked to make a statement of comprehensive
income. Ignore the effect of income taxes. Inventory based on a year-end counts on December 31,
2019, amounts to 800,000. It is determined that salaries, rent, utilities, and depreciation expenses
pertain to administrative functions (30%) and selling (70%).

Fundamentals of Accountancy, Business, and Management 2 1

MODULE 1
Activity 3: Answer and solution

Fundamentals of Accountancy, Business, and Management 2 2

MODULE 1
Fundamentals of Accountancy, Business, and Management 2 3
MODULE 1