CLASSROOM ACTIVITY
Objective
The students able to demonstrate
understanding by answering some questions
and problem-solving regarding accounting
elements of Statement of Comprehensive
income and classify each accounting
elements to its proper form/method
Identify: Classify the accounts
whether selling expense (SE),
administrative expense (AE), other 4. Interest expense
expense or other comprehensive 5. Change in revaluation surplus
income/loss (OCI) 6. Maintenance expense of delivery
van
1. Loss from translating the financial 7. Repairs and maintenance of
statement equipment – computer office
2. Income tax expense 8. Salaries expense of Head officer
3. Commission expense of sales staff
staff 9. Miscellaneous expense
10. Depreciation expense of store bldg
In the first year of operation MKB servicing company incurred
the following accounts in their income or loss for December 31,
2020. Service Revenue, P1,000,000; Salaries expense,
P100,000; Supplies Expense, P150,000; Depreciation expense
of vehicle, P120,000; Utilities Expense, P80,000; Insurance
Expense, 40,000; Rent Expense, P180,000; Gain on sale of
equipment, P6,250. What is the Net income of MKB company
for the year ended?
The ff information is available from Toshiba Company’s
accounting records for the current year:
Purchases 5,200,000
Purchase returns 150,000
Ending inventory 2,250,000
Freight out 400,000
Freight in 225,000
Cost of goods sold 4,650,000
Find the Beginning Inventory of Toshiba during the year.
Comprehensive income does not consider
the effect of
A. Interest receipts
B. Interest payments
C. Dividend payments
D. Dividend receipts
It is a type of business that generates
profit through buy and sell activities
The financial statement that shows the
profit or loss of a company and other
comprehensive income
This accounts represent the resources or
costs incurred by an entity in the
ordinary course of business to generate
profit.
What do call to the accounts that are
closed at the end of accounting period?
A merchandising business that sells
inventory to his clients in a large volume
or in bulk.
The accounting concept stating that the
revenues should be recognized when
earned and expenses when incurred
not when cash is received or paid
Which of the following is an adjunct
account?
a. Beginning Inventory
b. Freight In
c. Accumulated profit or losses
d. Sales Discount
The ff transactions occurred during July
a. Received 900 cash for service provided to a customer during
July
b. Received 2,200 cash investment from Barbara, the owner of
the business.
c. Received 750 from customer in partial payment of his account
receivable which arose from services provided in June.
d. Provided services to customer on credit, 375.
e. Borrowed 6,000 from the bank by signing a promissory note.
f. Received 1,250 cash from a customer for services to be
rendered next year
What was the amount of revenue for July?
ML company bought a material worth
20,000. Later, the company sold the said
material amounting to 50,000. If the
company uses perpetual method in
recording inventory. How much should
the sales transaction be presented
Natsu reported the following accounts in its Statement of
Comprehensive Income
• Professional Fees earned 800,000
• Unearned Professional Fees 500,000
• Commission expense 50,000
• Salaries expense 80,000
• Rent expense 70,000
• Interest expense 20,200
• Supplies expense 10,200
• Interest income 6,500
• Other comprehensive income 8,500
How much income should be reported in the SCI?
Nadine co. reported the ff. adjusted balances for the year
ended, December 31, 2020
Professional Fees Earned 520,000
Commission Expense 45,000
Salary expense 120,000
Rent expense 30,000
Utility expense 10,000
Supplies expense 5,000
Insurance expense 3,000
Miscellaneous expense 2,550
After closing process, at what amount should Nadine co. report
the income summary account (indicate whether debit or credit)
Walang 4ever Co. had these unadjusted account balances on
December 31, 2019:
Inventory, Jan 1 188,250
Purchases 142,700
Freight in 12,880
Freight out 15,250
Purchase discount 2,140
Purchase returns 26,710
Assuming that the physical count of inventory at the end is
97,000, the entry to adjust the inventory accounts ( by creating
cost of goods sold) would include a debit to cost of goods sold
for what amount?
3. Below are selected accounts balances of
Mount Merchandise Company during the period:
Dividends paid 1,000,000 Miscellaneous expense 125,000
Sales 8,350,000 Total Purchases 3,720,000
Salaries expense – sales 1,540,000 Purchase returns and allowances 325,000
Freight out 205,000 Doubtful account expense 150,000
Freight in 15,000 Loss on sale of securities 40,000
Inventory, beginning 1,040,000 Inventory, ending 850,000
How much is the Cost of goods sold during the
year?
On April 30, 2020, Julia Inc. paid P80,640 for the 3
years fire insurance that would start after 3
months. The company also has remaining
P35,000 balance of prepaid insurance on Jan
1,2020 which was paid on February 1, 2019 for 3
year insurance. What is the total insurance
expense of the company for the year 2020.
Sakuragi is professional plumber that provides
services to clients within Pangasinan. On June 8,
Sakuragi was contracted by Ichigo to fix his
bathtub. Due to the large number of clients in
June, Sakuragi repaired Ichigo’s bathtub in July 23
and received the payment on August 1. At what
date should Sakuragi reported the revenue from
services?
Gross billing for merchandise sold by Joshua
comp. to its customers last year amounted to
12,820,000; sales returns and allowances were
280,000; sales discounts were 175,000 and freight
out was 150,000. Net sales last year for Jushua
comp were _______
Creepy co. reported profit after tax of 490,000.
Creepy’s income tax rate is 30%. Operating
expenses for the year is 15% of sales and 75% cost
based on sales. Other expenses were 5% of sales.
How much is the sales?
