Scribd
Upload
102 views11 pages

Statement: Comprehensive Income

The document provides a statement of comprehensive income for Masaya Company for the year ended December 31, 2020, including net sales, cost of goods sold, gross profit, operating expenses, income from operations, other income and expenses, and net income. It also includes notes on classifying certain expenses and determining subtotals until net income.

Uploaded by

Angela Cuevas Dimaano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
102 views11 pages

Statement: Comprehensive Income

The document provides a statement of comprehensive income for Masaya Company for the year ended December 31, 2020, including net sales, cost of goods sold, gross profit, operating expenses, income from operations, other income and expenses, and net income. It also includes notes on classifying certain expenses and determining subtotals until net income.

Uploaded by

Angela Cuevas Dimaano
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

Statement of

Comprehensive Income
Hyacinth Indira Destura-Hipe
Determine the Net Sales:
Determine the Net Purchase:
Determine the Cost of goods sold:
MASAYA COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2020
Group all revenue items together
and all expense items together.
Beginning Inventory 30,400
Ending inventory 28,235
Decrease in Inventory 2,165

Bad debts expense


• is an operating expense related to accounts
receivable.
• Some accounts become uncollectible
MASAYA COMPANY Multi-step SCI (Function of expense)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2020 • is characterized by the presentation of several
subtotals until net income is determined.
• The first subtotal is gross profit which is
Net Sales 782,965 computed as (Net Sales less Cost of Goods
Less: Cost of goods sold 519,073 Sold)
• The next subtotal, Income from Operations
Gross Profit 263,892 (Gross Profit less Operating Expenses)
Less: Operating Expenses • Net Income is next determined by adding
Other Income (i.e. interest income and
Selling expenses 91,500 deducting other expenses (i.e. interest
General and administrative 117,819 expenses) from Income from Operations.

Income/(Loss) from Operations 54,573


Interest income 5,200
Gain on sale of PPE 5,465
Interest expense (5,400)
NET INCOME 59,838
General and Administrative Expenses – refer to those incurred in
the daily operations and management of the business.

Selling Expenses – are costs related to marketing, selling and


distributing the company’s merchandise.
a. Depreciation of P2,500 is for computer equipment used in the administrative office.
b. Amortization is attributed to office leasehold improvements.
c. 50% of salaries are attributed to sales personnel.
d. Utilities for the store represent 40% of utilities expense.
e. Rent for the office space is P25,000.
f. Bad debts expense is 4% of net sales. Classify the bad
debt expense as a general and administrative expense.
MASAYA COMPANY
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED DECEMBER 31, 2020 Net income if it is a net positive
result while a net loss if it is a
Net Sales 782,965
net negative result.
Less: Cost of goods sold 519,073
Gross Profit 263,892
Less: Operating Expenses
Selling expenses 91,500
General and administrative 117,819
Income/(Loss) from Operations 54,573
Interest income 5,200
Gain on sale of PPE 5,465
Interest expense (5,400)
NET INCOME 59,838

You might also like