BAINTE1X – ACCOUNTING INTEGRATED FUNDAMENTALS

MODULE 9: MERCHANDISING TRANSACTIONS

PROBLEM 1 (Income Statement). Presented here are the components in Sanders Company’s income statement.
Determine the missing amounts.

Sales COGS Gross Profit Operating Expenses Net income

P75,000 (a) P40,000 (b) P17,000

(c) P56,000 P64,000 P48,000 (d)

Answers:

a.

b.

c.

d.

PROBLEM 2 (Cost of Goods Sold). For each of the following, determine the missing amounts.

Beginning Goods Available Cost of Goods Ending

Inventory Purchases for Sale Sold Inventory

1. P20,000 _________ P40,000 P25,000 _________

2. _______ P220,000 P250,000 ________ P40,000

Answers:

1. Purchases, _______; Ending inventory, _______

2. Beginning inventory, ________ ; Cost of goods sold, _________

PROBLEM 3 For each of the following, determine the missing amounts

Sales COGS Gross Profit Operating Expenses Net income

1. P100,000 ________ __________ P25,000 P10,000

2. ________ P95,000 P120,000 _________ P80,000

Answers:

1. COGS, _________ ; Gross profit, __________

2. Sales, _________; Operating expenses, __________