ACCOUNT TITLES DEBIT CREDIT

Merchandise Inventory, Beg. P 45,000

Sales P 902, 000
Sales Discounts 5,000
Sales Returns and Allowances 8,000
Purchases 675,000
Purchase Discounts 3,600
Purchase Returns and Allowances 6,500
Freight In 5,000
Rene Expense 30,000
Salaries Expense 50,000
Taxes and Licenses 15,000
Freight Out 3,920
Merchandise Inventory, End 102,000
Uncollectible Accounts Expense 19,100
Depreciation Expense 11,250
Interest Expense 3,800
Utilities Expense 18,000
 Step 3:
Group the Cost of
Step 1: Step 2: Sales accounts
Write the heading, Determine the Net starting from
the title of the report Sales. (Gross Sales Merchandise
and the date covered less Sales Discounts Inventory, beg. to
(for the period and Sales Returns and arrive at Cost of
ended). Allowances) Goods Available for
Sale. Then, deduct
Merchandise
Inventory, End to
arrive at the Cost of
Step 6: Step 5: Goods Sold.
Deduct classified Group the operating
Operating Expenses expenses as to
from Gross Profit Selling or
and you will arrive Distribution and Step 4:
at PROFIT / LOSS or General and Determine Gross
NET INCOME / NET Administrative Profit by deducting
LOSS. Expense. Cost of Sales from Net
Sales.
 ACCOUNT TITLES DEBIT CREDIT
Merchandise Inventory, Beg. P 45,000
Sales P 902, 000
Sales Discounts 5,000
Sales Returns and Allowances 8,000
Purchases 675,000
Purchase Discounts 3,600
Purchase Returns and Allowances 6,500
Freight In 5,000
Rene Expense 30,000
Salaries Expense 50,000
Taxes and Licenses 15,000
Freight Out 3,920
Merchandise Inventory, End 102,000
Uncollectible Accounts Expense 19,100
Depreciation Expense 11,250
Interest Expense 3,800
Utilities Expense 125,030
Step 1:
Write the heading,
the title of the report
and the date covered
(for the period
ended).
Step 2:
Determine the Net
Sales. (Gross Sales
less Sales Discounts
and Sales Returns and
Allowances)

Ichiro Supermart
Statement of Comprehensive Income
For the month ended June 30, 2017

Revenue from Sales:

Sales P 902,000
Less: Sales Discounts P 5,000
Sales Returns & Allowances 8,000 13,000
Net Sales P 889,000
 ACCOUNT TITLES DEBIT CREDIT
Merchandise Inventory, Beg. P 45,000
Sales P 902, 000
Sales Discounts 5,000
Sales Returns and Allowances 8,000
Purchases 675,000
Purchase Discounts 3,600
Purchase Returns and Allowances 6,500
Freight In 5,000
Rene Expense 30,000
Salaries Expense 50,000
Taxes and Licenses 15,000
Freight Out 3,920
Merchandise Inventory, End 102,000
Uncollectible Accounts Expense 19,100
Depreciation Expense 11,250
Interest Expense 3,800
Utilities Expense 125,030
 Step 3:
Group the Cost of Sales accounts Step 4:
starting from Merchandise Inventory, Determine Gross
beg. to arrive at Cost of Goods Profit by deducting
Available for Sale. Then, deduct Cost of Sales from Net
Merchandise Inventory, End to arrive Sales.
at the Cost of Goods Sold.

Cost of Goods Sold:

Merchandise Inventory, Jan. 1 P 45,000
Purchases P 675,000
Less: Purchase Discounts P 3,600
Purchase Returns & Allowances 6,500 10,100
Net Purchases P 664,900
Add: Freight In 5,000
Delivered Cost of Purchases 669,900
Goods Available for Sale P 714,900
Less: Merchandise Inventory, Jan. 31 102,000 612,900
Gross Profit 276,100
 Ichiro Supermart
Statement of Comprehensive Income
For the month ended June 30, 2017

Revenue from Sales:

Sales P 902,000
Less: Sales Discounts P 5,000
Sales Returns & Allowances 8,000 13,000
Net Sales P 889,000
Cost of Goods Sold:
Merchandise Inventory, Jan. 1 P 45,000
Purchases P 675,000
Less: Purchase Discounts P 3,600
Purchase Returns & Allowances 6,500 10,100
Net Purchases P 664,900
Add: Freight In 5,000
Delivered Cost of Purchases 669,900
Goods Available for Sale P 714,900
Less: Merchandise Inventory, Jan. 31 102,000 612,900
Gross Profit P276,100
 ACCOUNT TITLES DEBIT CREDIT
Merchandise Inventory, Beg. P 45,000
Sales P 902, 000
Sales Discounts 5,000
Sales Returns and Allowances 8,000
Purchases 675,000
Purchase Discounts 3,600
Purchase Returns and Allowances 6,500
Freight In 5,000
Rene Expense 30,000
Salaries Expense 50,000
Taxes and Licenses 15,000
Freight Out 3,920
Merchandise Inventory, End 102,000
Uncollectible Accounts Expense 19,100
Depreciation Expense 11,250
Interest Expense 3,800
Utilities Expense 125,030
Step 5: Step 6:
Deduct classified
Group the operating
Operating Expenses
expenses as to Selling or
from Gross Profit and
Distribution and General
you will arrive at PROFIT
and Administrative Expense.
/ LOSS or NET INCOME
/ NET LOSS.

Operating Expenses:
Selling or Distribution:
Salaries Expense P 50,000
Freight Out 3,920
Taxes & Licenses 15,000
Uncollectible Accounts Expense 19,100 P 88,020

General & Administrative:

Rent Expense P 30,000
Depreciation Expense 11,250
Utilities Expense 18,000 59,250 P147,270
Profit before Finance Charges P128,830
Less: Interest Expense 3,800
Profit for the month P 125,030
Cost of Goods Sold:
Merchandise Inventory, Jan. 1 P 45,000
Purchases P 675,000
Less: Purchase Discounts P 3,600
Purchase Returns & Allowances 6,500 10,100
Net Purchases P 664,900
Add: Freight In 5,000
Delivered Cost of Purchases 669,900
Goods Available for Sale P 714,900
Less: Merchandise Inventory, Jan. 31 102,000 612,900
Gross Profit P276,100
Operating Expenses:
Selling or Distribution:
Salaries Expense P 50,000
Freight Out 3,920
Taxes & Licenses 15,000
Uncollectible Accounts Expense 19,100 P 88,020

General & Administrative:

Rent Expense P 30,000
Depreciation Expense 11,250
Utilities Expense 18,000 59,250 P147,270
Profit before Finance Charges P128,830
Less: Interest Expense 3,800
Profit for the month P 125,030