LESSON2 FABM2 STATEMENT OF COMPREHENSIVE

fabm2 ppt

1. Multi Step Income Statement

2. 1. NET SALE = SALES - ( SALES RETURN + SALES DISCOUNT) 2. NET PURCHASES = PURCHASES - (PURCHASES RETURN + PURCHASES DISCOUNT) 3. NET COST OF PURCHASES = NET PURCHASES + FREIGHT IN 4. COST OF GOODS AVAILABLE FOR SALE = BEGINNING INVENTORY + NET COST OF PURCHASES 5. COST OF GOOD SOLD = COST OF GOODS AVAILABLE FOR SALE - ENDING INVENTORY 6. GROSS PROFIT = NET SALES - COST OF GOODS SOLD 7. NET INCOME/NET LOSS = GROSS PROFIT - GENERAL & ADMINISTRATIVE EXPENSE - SELLING EXPENSE GENERAL FORMULA

3. Purchase Return - 20,000 Sales Returns: 30,000 selling utilities expense - 5,000 Purchase Discounts: 10,000 selling miscellaneous expense - 1,000 Freight In: 15,000 Production Salaries Expense - 10,000 Ending Inventory: 50,000 Selling Salaries Expense - 20,000 Purchases 100,000 Selling Rent Expense: 15,000 Production Depreciation Expense: 7,000 Production Utilities Expense: 6,000 Sales: 500,000 Selling Depreciation Expense: 10,000 Sales Discounts: 10,000 Beginning Inventory: 250,000 Production Rent Expense: 8,000

4. Purchase Return - 25,000 Sales Returns: 40,000 selling utilities expense - 3,000 Purchase Discounts: 10,000 production miscellaneous expense - 2,000 Freight In: 20,000 Production Salaries Expense - 25,000 Ending Inventory: 60,000 Selling Salaries Expense - 15,000 Purchase: 150,000 Selling Rent Expense: 10,000 Production Depreciation Expense: 8,000 Production Utilities Expense: 5,000 Sales: 600,000 Selling Depreciation Expense: 5,000 Sales Discounts: 15,000 Beginning Inventory: 200,000 Production Rent Expense: 12,000

5. Purchase Return - 20,000 Sales Returns: 30,000 selling utilities expense - 5,000 Purchase Discounts: 10,000 selling miscellaneous expense - 1,000 Freight In: 15,000 Production Salaries Expense - 10,000 Ending Inventory: 60,000 Selling Salaries Expense - 20,000 Selling Rent Expense: 15,000 Production Depreciation Expense: 7,000 Production Utilities Expense: 6,000 Sales: 500,000 Selling Depreciation Expense: 10,000 Sales Discounts: 10,000 Beginning Inventory: 250,000 Production Rent Expense: 8,000 Purchases 100,000

6. Purchase Return - 30,000 Sales Returns: 45,000 selling utilities expense - 12,000 Purchase Discounts: 15,000 sales rent - 20,000 Freight In: 20,000 Production Salaries Expense - 60,000 Ending Inventory: 125,000 Sales Staff Salaries - 20,000 Production SUpplies : 5,000 Advertising - 25,000 Income TAx 97,500 Production Depreciation Expense: 15,000 Production Utilities Expense: 10,000 Sales: 1,200,000 Sales Discounts: 20,000 Beginning Inventory: 300,000 Ware House Rent Expense: 45,000 Purchases 420,000

7. Purchase Return - 20,000 Sales Returns: 45,000 selling utilities expense - 12,000 Purchase Discounts: 18,000 - Shop Space Rent - 20,000 Freight In: 17,500 Production Salaries Expense - 41,430 Ending Inventory: 132,000 Sales Agent Salaries - 20,000 Production Supplies : 8,235 Marketing Team - 35,000 Production Depreciation Expense: 15,000 Production Utilities Expense: 10,000 Sales: 978,456 Sales Discounts: 19,500 Beginning Inventory: 350,000 Ware House Rent: 50,000 Purchases 400,000

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