INDIVIDUAL PERFORMANCE TASK #3

PART 2 – FUNCTIONAL FORM INCOME STATEMENT

The following ledger balances were taken from the books of Double E Trading as of May
31, 2022, the end of the fiscal period.

Accounts Payable P 117850

Accounts Receivable 132,650
Accumulated Depreciation- Furniture & Fixtures 18,335
Accumulated Depreciation-Office Equipment 47,090
Advertising Expense 31,650
Edel, Capital, June 1, 2021 180,250
Edel, Drawing 35,650
Allowance for Doubtful Accounts 10,650
Cash 127,550
Depreciation Expense- Furniture & Fixtures 9,200
Depreciation Expense- Office Equipment 23,545
Doubtful Accounts Expense 28,750
Freight in 10,490
Freight out 8,040
Furniture & Fixtures 70,670
Interest Expense 11,230
Interest Income 8,700
Merchandise Inventory, June 1,2021 103,500
Mortgage Payable (due 2026) 205,250
Notes Receivable 58,050
Office Equipment 214,450
Office Salaries 77,750
Office Supplies Used 17,700
Prepaid Expenses 12,450
Purchases 606,045
Purchase Discounts 6,800
Purchase Returns and Allowances 11,460

Sales 957,750
Sales discounts 12,500
Sales returns and allowances 8,870
Sales salaries 50,870
SSS & Philhealth Premiums Expense 7,890
SSS & Philhealth Contributions Payable 18,790
Withholding Taxes Payable 9,450
 Unearned Sales Income 17,125

Additional Data:

The ending merchandise inventory as per physical count amount to P100,100.

Required: Prepare the following financial statements

1. Functional Form Income Statement
2. Notes to Financial Statements