National College of Business and Arts

Fairview, Quezon City

Senior High School Department
A.Y. 2020-2021

EUSEBIO,JOHN LESTER
12-Aristotle
FABM 2
ACTIVITY 1.3

Exercise 7: FIPELY OFFICE SUPPLIES (Without Notes)

Fipely Office Supplies

Income Statement
For the Year ended December 31,2017
Net Sales     ₱ 1,449, 940.00
Cost of Sales     ₱ 878,600.00
Gross Profit     ₱ 571,340.00
Total Income     ₱ 571,340.00
Operating Expense      
  Salaries Expense 238,000.00  
  Utilities Expense 70,000.00  
  Rent Expense 49,800.00  
  Depreciation Expense-Equipment 31,000.00  
  Insurance Expense 10,000.00  
  Supplies Expense 9,000.00  
  Miscellaneous Expense 7,200.00 ₱ 415,000.00
Net Income     ₱ 156,340.00
       
 Fipely Office Supplies
Income Statement
For the Year ended December 31, 2017
Revenue        
Sales     ₱ 1,485,400.00  
Less: Sales Returns and Allowances ₱ 13,800.00      
₱
Sales Discounts 21,660.00   35,460.00  
Net Sales       ₱ 1,449, 940.00
Cost of Sales        
Merchandise Inventory , Beginning     ₱ 265,000.00  
Add: Net Cost of Purchases        
Purchases   ₱ 980,000.00    
Less: Purchase Returns & ₱
Allowances 21,800.00      
Purchase Discount 19,600.00 ₱ 41,400.00    
Net Purchases   ₱ 938,600.00    
Add: Freight-in   7,500.00 ₱ 946,100.00  
Goods Available for Sale     ₱ 1,211,100.00  
Less: Merchandise Inventory Ending     332,500.00  
Cost of Sales       ₱ 878,600.00
Gross Profit       ₱ 571,340.00
Operating Expenses        
Salaries Expense   ₱ 238,000.00    
Utilities Expense   70,000.00    
Rent Expense   49,800.00    
Depreciation Expense-Equipment   31,000.00    
Insurance Expense   10,000.00    
Supplies Expense   9,000.00    
Miscellaneous Expense   7,200.00   ₱ 415,000.00
Net Income       ₱ 156,340.00
         
Exercise 8: Teena’s Buddy Depot (With Notes)

Teena's Buddy Depot

Income Statement
For the year ended December 31,2017
Net Sales 1   ₱ 644,240.00
Cost of Sales 2   ₱ 486,056.00
Gross Profit     ₱ 158,184 .00
Total Income     ₱ 158,184 .00
Operating Expenses      
Distribution Expense 3 53,684.00  
Administrative Expenses 4 103,600.00 ₱ 157,284 .00
Net Income     ₱ 900 .00
       

Note 1-Net Sales

Gross Sales     ₱ 664,000.00

Less: Sales Returns and Allowances ₱ 6,480.00    
Sales Discounts ₱ 13,280.00 19,760.00  
Net Sales     ₱ 644,240.00

Note 2-Cost of Sales

Cost of Sales      
Merchandise Inventory , Beginning     ₱ 180,000.00
Add: Net Cost of Purchases      
Purchases   ₱ 445,200.00  
Less: Purchase Returns &
Allowances ₱ 14,400.00    
Purchase Discount 8,904.00 ₱ 23,304.00  
Net Purchases   421.896.00  
Add: Freight-in   2,560.00 ₱ 424,456.00
Goods Available for Sale     ₱ 604,456.00
Less: Merchandise Inventory Ending     118,400.00
Cost of Sales     ₱ 486,056.00
Note 3- Distribution Expense
Distribution Expense      
Sales Salaries Expense   48,000.00  
Advertising Expense   5,684.00 53,684.00

Note 4- Administrative Expense

Administrative Expenses      
Office Salaries Expense   40,000.00  
Supplies Expenses   2,600.00  
Utilities Expense   36,000.00  
Insurance Expense   4,000.00  
Depreciation Expense-Building   11,000.00  
Depreciation Expense-Equipment   10,000.00 103,600.00