Department of Education

SCHOOLS DIVISION OF CITY OF MEYCAUAYAN

Pag-asa St., Malhacan, City of Meycauayan, Bulacan

Senior High School

Activity Sheet 12
in
Fundamentals of
Accountancy,Business
and Management 2
Statement of Comprehensive Income-
Single Step
ABM_FABM12Ic-d, ABM_FABM12Ic-d-6
 STATEMENT OF COMPREHENSIVE INCOME -SINGLE STEP

LET US KNOW

Success in business cannot be measured by merely looking at the façade of the

operation. It is not how many inventory that you have in the stock room or how many
inquiries you make about your product and services, it’s not about the number customers
that pass by at your store that you can conclude that a business is performing well. In this
module we are going to discuss a financial statement that contains a data which will help our
decision maker in the business to plan and decide on how it will perform to keep the business
in the market. We measure the generated revenue and looking at its cost spent. We have a
two part of the discussions. The first part is an in-depth study of the forms and elements of
Statement of Comprehensive Income- Single Step for service business entity.

LET US REVIEW

Use the sequence chart below to recall the step by step procedure in preparation of
Statement of Financial Position. Write your answer on separate sheet of paper.

Preparation of Statement of Financial Position

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 LET US STUDY

From the book Theory of Accounts ,CPA examination 2015 edition of Conrado and
Christian Aris Valix, they define Comprehensive Income is the change in equity during a
period resulting from transactions and other events, other than changes resulting from
transactions with owners in their capacity as owners.

Comprehensive Income presents the following details of the business operation;

1. Components of Profit and loss

2. Components of other comprehensive income
3. Cost spent to generate the revenue or income which is the additional of revenue on
cost

Difference of Income Statement to Statement of Comprehensive Income.

Under the PAS 1 , paragraph 10A, provides that an entity has two options of presenting
comprehensive income,

a) An Income statement , showing the components of profit or loss. Under the PAS1
income statement is known as Statement of Profit and Loss.Income Statement
has had a simple presentation of the company’s financial performance during a
given period of time or the traditional report format. You can use “net income
or net loss”referring to profit and loss.
b) Statement of Comprehensive Income beginning with profit or loss as shown in the
income statement plus or minus the components of other comprehensive income.
The purpose of comprehensive income is to include a total of all operating and
financial events that affect owners' interests in a business. Comprehensive
income may report amounts per month, quarter, or year.
(https://www.investopedia.com/terms/c/comprehensiveincome.asp)

But regardless of what title of this report an entity prefers to call it will still have the same
key features.

Key Features of Statement Comprehensive Income

The title It is use to identify the title of the report, company name and date .
Revenues Defined by the conceptual Framework for Financial Reporting (IASB 2010)
arises in the course of the ordinary activities of an entity and is referred to by a
variety of different names including sales,fees,interest,dividends,royalties and
rent.

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 a) Increases in assets, or decrease in liabilitiees, that result in increases in
equity other than those relating to contributions from holders of equity
claims (Ballada,2019).
b) Increase in economic benefit during accounting period in the form of
inflow or increase in assets or decrease in liability that results in
increase in equity,other than contribution from equity participants.

Expenses Defined by the conceptual Framework for Financial Reporting (IASB 2010),
arise in the course of ordinary activities of the entity include for example, cost
of sales and depreciation. They usually take the form of an outflow or depletion
of asset as cash and cash equivalents, inventory,property, plant and equipment.
a) Decreases in assets, or increase in liabilities, that result in decrease in
equity, other than those relating distributions to holders of equity
claims.
b) Defined as the decrease in economic benefit during the accounting
period in the form of outflow or decrease in assets and increase liability
that results in decrease in equity, other than distribution to equity
participants.
Classification Service Entity,expenses are classified as cost of service or operating expenses
of expenses Merchandising Entity, classification of expenses is more complex . It is classify
of an entity as cost of sales, selling expensesor administrative or operating expenses.

Statement of Comprehensive Income Presentation

Single Step Presentation, from Palma (2014), a presentation usually used for small
service enterprise. Single step means one deduction only of all expenses from total income
to arrive at the net income.

Example Pro-forma Single Step Presentation of Income statement

Figure 1 example of Income Statement of service entity

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 LET US PRACTICE

The adjusted trial balance of Mahangin Vulcanizing for year ending December 31,2019
show(All in total).

Account Debit Credit

Service Income ₱500,000.00
Operating Expenses ₱300,000.00
Assets ₱450,000.00
Liabilities ₱100,000.00
Mahangin, Vulcanizing as of
Jan 1, 2019 ₱200,000.00
Mahangin, Withdrawal ₱50,000.00
Total ₱800,000.00 ₱800,000.00

Adapted from Basic Accounting Sole Proprietorship by Roberto Z. Palma

Requirement

a. Determine the net income of Mahangin Vulcanizing .

b. Prepare the Statement of Comprehensive Income of Mahangin Vulcanizing Shop.
c. Write your answer on a separate sheet of paper.

LET US REMEMBER

In presentation of Statement of Financial Position. Let us remember the

following key points,

1. Remember the equation used for Statement of Comprehensive Income

Net Profit /Net Loss= Revenue – Operating Expenses
2. An Income statement,shows the components of profit or loss.
3. Revenue is defined by the Conceptual Framework for Financial Reporting (IASB
2010) arises in the course of the ordinary activities of an entity and is referred to
by a variety of different names including sales,fees,interest,dividends,royalties and
rent.
4. Expenses is defined by the conceptual Framework for Financial Reporting (IASB
2010,arise in the course of ordinary activities of the entity include for example,
cost of sales and depreciation.They usually take the form of an outflow or depletion
of asset as cash and cash equivalents,inventory,property,plant and equipment.
5. Classification of Expenses;
Service Entity,expenses are classified as cost of service or operating expenses
Merchandising Entity,classification of expenses is more complex.It is classify as
cost of sales,selling expenses or administrative or operating expenses.
6. Double Rule your final answer.

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 LET US APPRECIATE

Assume that you are a company financial accounting practitioner. Prepare an example
of Statement of Comprehensive Income of a service company as of December 31, 2019. Use
microsoft excel application in presenting your report .

Rubrics
10 pts. Correct format and all key feature of SCI-Single step was
presented very well. Elements was presented completely
and with correct computation. Double rule of final answer
was also executed.
7 pts. Correct format and all key features of SCI-Single step was
presented however double ruling was not executed and
presentation of elements is not organized.
5 pts. Incorrect format of SCI-Single step. Lacks key feature or
element, double ruling was not executed yet it was neatly
presented.
3 pts. Presented output does not comply with correct format,
miss out key features and report was unorganized.

LET US PRACTICE MORE

I. Prepare the Statement of Comprehensive Income of the following service business given.
Write your answer on the 12-column worksheet.

Park Sareoyi Accounting Firm Services

The following are the consolidated accounts of Park Sareoyi Accounting Firm Services as of
December 31, 2019.
Retainers /Professional Fees ₱4,000,000.00
Salaries Expense ₱100,000.00
Supplies Expense ₱50,000.00
Depreciation Expense ₱120,000.00
Utilities Expense ₱180,000.00
Insurance Expense ₱20,000.00
Rental Expense ₱200,000.00

You are task to prepare the Statement of Comprehensive Income-Single step for the firm for
the year. Determine if the company earned an income or loss.

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 Dan Bam Medical City Service

II. The account below is from Dan Bam Medical City Service as of December 31, 2019.

Retainers/Professional Fee ₱1,000,000.00

Salaries Expense ₱80,000.00
Supplies Expense ₱150,000.00
Depreciation Expense ₱200,000.00
Utilities Expense ₱100,000.00
Insurance Expense ₱160,000.00
Rent Expense ₱500,000.00

As an outsource bookkeeper, you are required to prepare the Statement of Comprehensive

Income report of the operation of Dan Bam Medical City Service. Determine whether the
company earned income or a loss for the current year.

EVALUATION

I. Choose the letter of the correct answer. Write your answer on the 12-column
worksheet.

1. It is a change in equity during the period resulting from transactions and other events,
other than changes resulting from transactions with owners in their capacity as
owners.
a. Comprehensive Income
b. Profit & Loss
c. Income Statement
d. Revenue
2. Comprehensive income includes ________________.
a. Profit and Loss
b. Other comprehensive income
c. Both Profit or loss and other comprehensive income
d. Neither profit or loss nor other comprehensive income
3. Which of the following is an element of Statement of Comprehensive Income?
a. Cash
b. Receivables
c. Prepaid Expense
d. Retainers Fee
4. Which of the following is not an element of Statement of Comprehensive Income?
a. Unearned Revenue
b. Service Revenue
c. Rent Expense
d. Commission expense

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 5. Which of the following is not a definition of expenses?
a. They usually take the form of an outflow or depletion of asset as cash and cash
equivalents, inventory, property, plant and equipment.
b. Decreases in assets, or increase in liabilities, that result in decrease in equity.
c. Arises in the course of ordinary activities of the entity include for example, cost of
sales and depreciation.
d. Arises in the course of the ordinary activities of an entity and is referred to by a
variety of different names including sales, fees, interest, dividends, royalties and
rent.

II. Supply the missing amount on the table below. Use the Statement in Comprehensive
Income equation. Write your answer on the 12-column worksheet.

No Revenue Expenses Net Income (Loss)

1 ₱923,456.00 ₱83,456.00 ?
2 ₱500,200.00 ? -₱50,200.00
3 ? ₱200,000.00 ₱125,000.00
4 ₱600,000.00 1/4 of Revenue ?
5 ₱2,400,000.00 ₱1,200,000.00 ?

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 All Rights Reserved
2020

ACKNOWLEDGEMENT

CAROLINA S. VIOLETA, EdD

Schools Division Superintendent

JERRY D. CRUZ, PhD, CESE

Asst. Schools Division Superintendent

DOMINADOR M. CABRERA, PhD

Chief, Curriculum Implementation Division

EDWARD C. JIMENEZ, PhD

Education Program Supervisor- LR Manager

JOCELYN A. MANALAYSAY, PhD

Education Program Supervisor- Mathematics

CHARMAINE S. TUMANGAN
Developer- Meycauayan National High School