UNIVERSITY OF SAN JOSE - RECOLETOS

SENIOR HIGH SCHOOL DEPARTMENT

FABM 2 PRACTICE PROBLEMS

STATEMENT OF COMPREHENSIVE INCOME (SCI)

1. Calculation of total revenues

Joseph Maloloy-on, Capital 275,000
Unearned commission income 10,000
Commission income 75,000
Utilities expense 9,000
Interest income 15,000
Accrued interest income 20,000
Miscellaneous income 5,000
How much is the total revenues? 95,000

2. Calculation of net income

Dominic Maampoon, Capital 400,000
Uncollectible accounts expense 8,000
Salaries expense 10,000
Accrued rent expense 15,000
Unearned service revenue 20,000
Accrued interest income 9,000
Depreciation expense 30,000
Delivery equipment 450,000
Taxes and licenses 7,000
Service revenues 80,000
How much is the net income from operations? 25,000

3. Calculation of net sales, cost of sales and gross profit

Merchandise inventory, end 200,000
Sales 280,000
Purchases 300,000
Merchandise inventory, beginning 150,000
Sales returns and allowances 5,000
Purchases discounts 20,000
Sales discounts 15,000
Freight-in 1,500
How much is net sales? 260,000 Cost of sales? 231,500 Gross profit? 28,500

4. Computation of missing items:

Inventory, beginning 180,000 150,000 220,000
Purchases 200,000 350,000 580,000
Goods available for sale 370,000 510,000 750,000
Cost of sales 220,000 225,000 270,000
Inventory, end 150,000 285,000 480,000
Purchase discounts 10,000 - 20,000
Purchase ret. & allow. - 15,000 30,000
Freight-in - 25,000 -

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 5. Answer as required:
The partial trial balance of Francis Mahigugmaon Merchandising for the year ended December
31, 2017 is shown below:
Debit Credit
F.M., Capital 357,000
F.M., Drawing 50,000
Sales 1,857,000
Sales returns and allow. 15,000
Sales discounts 8,000
Purchases 950,000
Purchase returns & allow. 5,000
Purchase discounts 3,000
Freight-in 6,000
Freight-out 2,000
Salesmen’s commission 45,000
January 1 inventory is 250,000 and December 31 inventory is 100,000.
Compute the amount of: a) net sales = 1,834,000 b) net purchases = 942,000 c) delivered cost of
purchases = 948,000 d) cost of goods available for sale = 1,198,000 e) cost of goods sold =
1,098,000 f) gross profit = 736,000 g) net income = 689,000

6. Single-step format of SCI preparation:

Using the following account balances, prepare a single-step Statement of Comprehensive Income
for Magnificat Laundry Services for the month ended June 30, 2018: Service income – 80,000;
Operating expenses: Bad debts expense – 350; Depreciation expense – 2,500; Salaries expense
– 10,000; Rent expense – 5,000; Utilities expense – 12,000; Laundry supplies expense – 20,000;
Taxes and licenses – 4,000; Advertising expense – 3,000.

Magnificat Laundry Services

Statement of Comprehensive Income
For the Month Ended June 30, 2018

Service income 80,000

Operating expenses:
Bad debts expense 350
Depreciation expense 2,500
Salaries expense 10,000
Rent expense 5,000
Utilities expense 12,000
Laundry supplies expense 20,000
Taxes and licenses 4,000
Advertising expense 3,000 56,850
Net income 23,150

7. Multi-step format of SCI preparation:

Using the following account balances, prepare a multi-step Statement of Comprehensive Income
for St. Michael Grocery for the month ended June 30, 2018: Gross sales – 1,771,800; Sales
discount – 10,440; Sales returns and allowances – 9,000; Purchases – 1,000,000; Purchase
discounts – 3,000; Purchase returns and allowances – 9,000; Freight-in – 5,000. Merchandise
inventory on June 1 is 500,000 and Merchandise inventory end on June 30 is 380,000. General
and administrative expenses include: Office supplies expense – 9,400; Salaries expense –

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 30,000; Utilities expense – 11,600; Insurance expense – 13,000. Selling expenses include:
Advertising expense – 6,000; Commission expense – 10,000; Store supplies expense – 12,400;
Delivery expense – 18,600.

St. Michael Grocery

Statement of Comprehensive Income
For the Month Ended June 30, 2018

Net sales:
Gross sales 1,771,800
Less: Sales discount 10,440
Sales returns and allowances 9,000 19,440
Net sales 1,752,360
Cost of goods sold:
Merchandise inventory, beginning 500,000
Purchases 1,000,000
Less: Purchase discounts 3,000
Purchase ret. & allow. 9,000 12,000
Net purchases 988,000
Add: Freight in 5,000
Net cost of purchases 993,000
Cost of goods available for sale 1,493,000
Less: Merchandise inventory, end 380,000
Cost of goods sold 1,113,000
Gross profit 639,360
Operating expenses:
General and administrative expenses:
Office supplies expense 9,400
Salaries expense 30,000
Utilities expense 11,600
Insurance expense 13,000 64,000
Selling expenses:
Advertising expense 6,000
Commission expense 10,000
Store supplies expense 12,400
Delivery expense 18,600 47,000 111,000
Net income 528,360

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“If I do not become a saint, I am doing nothing.” (St. Dominic Savio)

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