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ACCTG

The document contains examples of different types of income statements: a single-step income statement showing expenses deducted from revenue to calculate net loss, a multi-step income statement showing gross profit and expenses deducted to calculate net income, and a multi-step income statement with sales adjustments deducted before cost of goods sold and expenses deducted to calculate net income. It also contains an example of a cost of goods sold statement showing beginning inventory, purchases net of discounts and returns, transportation in costs, ending inventory, and cost of goods sold.

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Grace Anne Alapto
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758 views2 pages

ACCTG

The document contains examples of different types of income statements: a single-step income statement showing expenses deducted from revenue to calculate net loss, a multi-step income statement showing gross profit and expenses deducted to calculate net income, and a multi-step income statement with sales adjustments deducted before cost of goods sold and expenses deducted to calculate net income. It also contains an example of a cost of goods sold statement showing beginning inventory, purchases net of discounts and returns, transportation in costs, ending inventory, and cost of goods sold.

Uploaded by

Grace Anne Alapto
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Nature of Expense Method

Dela Cruz
Income Statement
Service Income P 85,000
Less: Expense
Interest Expense P 9,500
Salaries Expense 135,000
Utilities Expense 22,000
Rent Expense 14,300 180,800

Net Loss P 95,800

Function of Expense Method


Dela Cruz
Income Statement
Sales P 850,000
Less: Cost of Good Sales 215,000

Gross Profit P 635,000


Less: Expense
Distribution and Selling Expenses P 68,350
General and Administrative Expense 82,250 P 153,600

Net Income P 481,400

Multi-Step Income Statement


Lopez’s
Income Statement

Sales P 275,000
Less: Sales discounts 2,000
Sales returns and Allowances 1,000
Less: Cost of Goods sold 159,000

Gross Profit P 113,000


Less: Expense
Commissions Expense P 10,000
Advertising Expense 7,000
Sales Salaries Expense 20,000
Rent Expense-sales 12,000
Rent Expense-office 12,000
Office Salaries Expense 40,000
Utilities Expense 5,000
Interest Expense 50 P 106,050
Net Operating Income P 6,950
Add: Other Income (Charges)
Interest Revenue 150

Net Income P 7,100


Asug Delicacies
Cost of Good Sold
Merchandise Inventory, January 1 P 85,000
Add: Purchases P 785,450
Less: Purchase discounts P 35,245
Purchase Ret/Allowances 12,965 (48,210)
Net Purchases P 737,240
Add: Transportation In 6,325
Net cost of Purchases P 743,565
Cost of Good Sold Available for Sale P 828,565
Merchandise Inventory, December 31 (135,240)

Cost of Good Sold P 693,325

 Analyze whether there is an increase or a decrease in the inventory at the end of the year.
- In the final inventory, there is an increase.

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