Learning Activity Sheet

Fundamentals of Accountancy, Business and Management 2

Learning Activity Sheet

No. 4

Grade Level/ Grade 12 Date Week

Subject ABM3 Fundamentals of Accountancy, 2-3
Business and Management 2

Topic Single Step Approach of Preparation of Duration

Statement of Comprehensive Income

MELC prepare an SCI for a service business using Score

the single-step approach ABM_FABM12-Ibc-4

Specific At the end of the session, learners will be able to:

Objectives A. label the parts of Statement of Comprehensive Income for
Service Business using the single-step approach;

B. identify the account titles reported in Statement of

Comprehensive Income in service business; and

prepare a Statement of Comprehensive Income for Service Business

using the Single Step Approach.
I. Let’s Know

Financial Reports have varied formats and purposes. This learning activity sheet
focuses on the use of the “Single Step” format of presenting a Statement of
Comprehensive Income.

A Single-step format of Statement of Comprehensive Income reports all revenues

are in one section while all expenses are listed in another. The computation of net
income in a “single-step” is Total Revenues less Total Expenses. (Haddock, Price,
& Farina, 2012 cited by Montefero, C., & Honorario, 2016)
II. Let’s Perform & Practice (Activity)
Instruction: Below a trial balance with the list of account titles and their corresponding
balances. Answer the following questions written below.

Trial Balance
Debit Credit
Cash in Bank PHP 58,500
Accounts Receivable 4,500
Supplies 6,700
Prepaid Rent 6,000
Prepaid Insurance 3,000
Equipment 30,000
Accumulated Depreciation-Equipment PHP 1,000.00
Accounts Payable 25,000.00
Dela Cruz, Capital 50,000.00
Service Revenue 50,000.00
Salaries and Wages Expense 10,000.00
Utilities Expense 4,300.00
Depreciation Expense-Equipment 1,000.00
Miscellaneous Expense 2,000.00
Total PHP 126,000 PHP 126,000

1. List the account titles to be reported in the Statement of Comprehensive

Income. 1 pt. each item.
1.

2.

3.

4.

5.
III. Let’s Connect / Let’s Analyze
Instruction: Identify the account titles to be reported in the Income Statement and
prepare a single-step approach for a Service Business. For the name of the
business, you can use your name for a business name and for the name of the
owner. The report is for the month ended June 30, 2020. Below is the data to be
used.
Trial Balance Balance Sheet Income Statement
Debit Credit
Cash in Bank PHP 58,500
Accounts Receivable 4,500
Supplies 6,700
Prepaid Rent 6,000
Prepaid Insurance 3,000
Equipment 30,000
Accumulated PHP 1,000.00
Depreciation-Equipment
Accounts Payable
25,000.00
___________, Capital 50,000.00
Service Revenue 50,000.00
Salaries and Wages 10,000.00
Expense
Utilities Expense 4,300.00
Depreciation Expense- 1,000.00
Equipment
Miscellaneous Expense 2,000.00
Total PHP 126,000 PHP 126,000

1. How much is the total expenses? 2 pts. ________________

2. How much is the net income or loss of the company? 3 pts.__________________

IV. Let’s Answer

Multiple Choices. Write the letter of the correct answer in a separate sheet of
paper.
V.
1 Which of the following describes a Single-step approach of Statement of
Comprehensive Income?
A Assets, Liabilities and Owner’s Equity are listed in the different sections.
B Income and expenses have different sections, Total Revenues less Total
Expenses
C Cost of Goods sold is reported in details.
D It is a report for Revenue.
2 Which of the following statements below describes the parts of Single Step
Approach of Comprehensive Income Statement?

Statement 1 Heading is the second part of the Single Step Approach of Service
Business.
Statement 2 Address of the company is part of the heading of Statement of
Comprehensive Income.

A First statement is correct C Both statements are correct

B Second statement is correct D Both statements are wrong

3 Which of the following is the second part of Single Step Approach of Statement of
Comprehensive Income?
A Expenses C Net Income/ Loss
B Heading D Revenues

4 It is the last part of the Single-Step Approach of Statement of Comprehensive

Income.
A Expenses C Net Income/ Loss
B Heading D Revenues

5 What part of Single-Step Approach of Statement of Comprehensive Income that

results in the decrease in Net Income or might result to Net loss?
A Expenses C Net Income/ Loss
B Heading D Revenues
VI. Let’s Explore / Let’s Create
Requirement: Make a hypothetical Statement of Comprehensive Income of a
Service Business and Merchandising Business.

Rubric

Excellent Good Satisfactor Needs

y Improvement
Completeness Complete Missing 1 Missing 2 Missing 3 or
of the parts element elements more elements
Elements 10 8 7 6
Followed Followed the Followed the Followed Followed the
Suggested format 100% format 95% the format format 75%
Format 5 4 85% 2
3
Neatness No erasures 1-2 erasures 3 erasures More than 4
(Used the 5 4 3 erasures
suggested way 2
of proper
erasure -One
Line)

References
Accounting-Simplified.com. (2020, July 1). Expense. Retrieved from Accounting-Simplified.com:
https://accounting-simplified.com/expense.html

Hayes, A. (2020, July 1). Cost of Goods Sold-COGS. Retrieved from Investopedia:
https://www.investopedia.com/terms/c/cogs.asp

Income. (2020, July 1). Retrieved from Accounting-Simplified.com: https://accounting-

simplified.com/income.html

Salazar, D. R. (2017). Fundamentals of Accountancy, Busines and Management 2. Quezon City: Rex
Book Store Inc.

Prepared by:

QUENNIE D. GUMALAWE
 ANSWER KEY
Competency 4 : Prepare an SCI for a service business using the single-step
approach ABM_FABM12-Ibc-4

Let’s Perform & Practice (Activity)

List the account titles to be report in the Statement of Comprehensive Income. 1 pt.
each item.
1. Service Revenue

2. Salaries and Wages Expense

3. Utilities Expense

4. Depreciation Expense-Equipment

5. Miscellaneous Expense

Let’s Connect / Let’s Analyze

Trial Balance Balance Sheet Income Statement

Debit Credit

Cash in Bank PHP58,500

Accounts Receivable 4,500

Supplies 6,700

Prepaid Rent 6,000

Prepaid Insurance 3,000

Equipment 30,000

Accumulated Depreciation-Equipment PHP 1,000.00

Accounts Payable 25,000.00

___________, Capital 50,000.00

Service Revenue 50,000.00 PHP 50,000.00

Salaries and Wages Expense 10,000.00 PHP 10,000.00

Utilities Expense 4,300.00 4,300.00

Depreciation Expense-Equipment 1,000.00 1,000.00

Miscellaneous Expense 2,000.00 PHP 2,000.00

Total PHP 126,000 PHP 126,000 PHP 50,000.00

 Name of Student Company
Statement of Comprehensive Income
As of June 30, 2020

Service Revenue PHP 50,000.00

Less:
Salaries and Wages Expense 10,000.00
Utilities Expense 4,300.00
Depreciation Expense 1,000.00
Miscellaneous Expense 2,000.00
Total Expenses PHP 17,300.00
Net Income/ Loss PHP 32,700.00

3. How much is the total expenses? 17,300.00 ans. 2 pts.

4. How much is the net income or loss of the company? 32,700.00 3 pts.
Let’s Answer:
1. B 2.A 3. D 4.C 5. A