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Income Statement

The income statement summarizes the profitability of Wei Long Trading for the month of December 2023. Net sales were PHP 702,000 with a cost of sales of PHP 230,000, resulting in a gross profit of PHP 472,000. Total income including other income of PHP 50,000 was PHP 522,000. Operating expenses totaled PHP 114,200, resulting in a net income of PHP 407,800.

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258 views4 pages

Income Statement

The income statement summarizes the profitability of Wei Long Trading for the month of December 2023. Net sales were PHP 702,000 with a cost of sales of PHP 230,000, resulting in a gross profit of PHP 472,000. Total income including other income of PHP 50,000 was PHP 522,000. Operating expenses totaled PHP 114,200, resulting in a net income of PHP 407,800.

Uploaded by

theuserisdee66
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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STATEMENT OF PROFIT AND LOSS OR INCOME STATEMENT

What is the purpose of INCOME STATEMENT?


= TO KNOW IF YOUR BUSINESS GAIN OR LOSS.

WEI LONG TRADING


INCOME STATEMENT
FOR MONTH ENDED DECEMBER 31, 2023

NOTE
NET SALES 1 PHP. 702,000
LESS: COST OF SALES 2 (230,000)
GROSS PROFIT PHP 472,000
OTHER INCOME 3 50000

TOTAL INCOME PHP522,000


LESS: OPERATING EXPENSES
DISTRIBUTION EXPENSES 4 PHP 65,800
ADMINISTRATIVE EXPENSES 5 43,400
OTHER EXPENSES 6 2,600
FINANCE COST 7 2,400 (114,200)
NET INCOME PHP 407,800
EXAMPLE: WEI LONG TRADING, DEC. 31, 2023

SALES/ GROSS SALES 782,000


SALES RETURN AND ALLOWANCES 32,000
SALES DISCOUNT 48,000
PURCHASES 220,000
PURCHASE RETURN AND ALLOWANCES 34,000
PURCHASE DISCOUNT 26,000
FREIGHT- IN 10,000
MERCHANDISE INVENTORY, BEGINNING 180,000
MERCHANDISE INVENTORY, END 120,000
SALES SALARIES EXPENSES 52,000
DEPRECIATION EXPENSE- STORE EQUIPMENT 7,800
UTILITIES EXPENSES – STORE 6,000
OFFICE SALARIES EXPENSE 34,000
UTILITIES EXPENSE- OFFICE 4,400
OFFICE SUPPLIES 3,000
BAD DEBTS EXPENSE 2,000
INTEREST EXPENSE 2,400
LOSS ON SALE OF EQUIPMENT 1,600
DISCOUNT LOSS 1,000
INTEREST INCOME 30,000
RENT INCOME 20,000
NOTE 1: NET SALES
GROSS SALES 782000
LESS: SALES RETURN AND ALLOWANCES 32000
SALES DISCOUNT 48000 (80000)
NET SALES 702,000

NOTE 2: COST OF SALES /COST OF GOOD SOLD


MERCHANDISE INVENTORY, BEGINNING 180,000
ADD: NET COST OF PURCHASE
PURCHASES 220,000
LESS: PURCHASE RETURN AND ALLOWANCES 34000
PURCHASE DISCOUNT 26000 (60,000)
NET PURCHASE 160,000
ADD: FREIGHT IN 10000 170000

GOODS AVAILABLE FOR SALE PHP.350,000


LESS: MERCHANDISE INVENTORY END, (120,000)
COST OF SALES PHP230,000

NOTE 3: OTHER INCOME


INTEREST INCOME 30000
RENT INCOME 20000
TOTAL PHP50000

NOTE 4: DISTRIBUTION EXPENSES


SALES SALARIES EXPENSES 52,000
DEPRECIATION EXPENSE- STORE EQUIPMENT 7,800
UTILITIES EXPENSES – STORE 6,000
TOTAL PHP65,800

NOTE 5: ADMINISTRATIVE EXPENSES


OFFICE SALARIES EXPENSE 34,000
UTILITIES EXPENSE- OFFICE 4,400
OFFICE SUPPLIES 3,000
BAD DEBTS EXPENSE 2,000
TOTAL PHP 43,400

NOTE 6: OTHER EXPENSES


LOSS ON SALE OF EQUIPMENT 1,600
DISCOUNT LOSS 1,000
TOTAL PHP2,600
NOTE 7: FINANCE COST
INTEREST EXPENSE PHP 2,400
TRY TO MAKE INCOME STATEMENT
THE FOLLOWING ARE ACCOUNT TAKING FROM THE BOOK OF JUAN DELA CRUZ TRADING FOR THE
YEAR ENDED DECEMBER 31, 2017.

SALES PHP 450,000


PURCHASES 284,000
INVENTORY, JAN 1 80,000
SALES RETURN AND ALLOWANCES 18,000
SALES DISCOUNT 12,000
PURCHASE RETURN AND ALLOWANCES 14,000
PURCHASE DISCOUNT 12,000
FREIGHT- IN 6,000
INVENTORY, DEC. 31 88,000
ADVERTISING EXPENSE 18,000
SALES SALARIES 74,000
FREIGHT-OUT 14,200
UTILITIES EXPENSE STORE 2,800
STORE SUPPLIES 6,000
OFFICE SALARIES 22,000
UTILITIES EXPENSE- 0FFICE 4,800
OFFICE SUPPLIES 2,400
DOUBTFUL ACCOUNT EXPENSE 7,200
DIVIDEND INCOME 50,000
RENT INCOME 40,000
INTEREST EXPENSE 16,000
DISCOUNT LOST 1,600

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