DIRECTION: Prepare the line items for Adan Merchandising and then prepare the Statement of Comprehensive Income: Noto 1- Cost of Sales Nole 2- Other Income Noto 3- Distribution Conts Note 4 Administrative Expenses Note 5-Other Expenses 1. Additional Information, Ending Inventory is PI60,000,00 2. One half of saleries, rent and depreciation are attributable to the non-sales department. The sales department does not share in the other expenses Dr. Cr. Accounts P2,500,000.00 Sales 110,000.00 Interest income 40,000.00 Gains from Sales of Other Assets P100,000.00 Inventary, beg 500,000.00 Purchases 10,000.00 Freight-in 12,000.00 Purchase retums 13,000.00 Purchase discounts 30,000.00 Freight-out 72,000.00 Sales commission 40,000.00 Advertising expense 650,000.00 Salaries expense 60,000 00 Rent expense 80,000.00 Deprecialion expanse 40,000.00 Uttes experise 20,000.00 Supplies expense 10,000.00 Transportation and travel espense 24,000.00 Insurance expense 150,000.00 Taxes and icenses 4,300.00 Interest expense 2,500.00 Miscellaneous epense 30,000.00 Loss on the sale of equipment
DIRECTION: Prepare the line items for Adan Merchandising and then prepare the Statement of Comprehensive Income: Noto 1- Cost of Sales Nole 2- Other Income Noto 3- Distribution Conts Note 4 Administrative Expenses Note 5-Other Expenses 1. Additional Information, Ending Inventory is PI60,000,00 2. One half of saleries, rent and depreciation are attributable to the non-sales department. The sales department does not share in the other expenses Dr. Cr. Accounts P2,500,000.00 Sales 110,000.00 Interest income 40,000.00 Gains from Sales of Other Assets P100,000.00 Inventary, beg 500,000.00 Purchases 10,000.00 Freight-in 12,000.00 Purchase retums 13,000.00 Purchase discounts 30,000.00 Freight-out 72,000.00 Sales commission 40,000.00 Advertising expense 650,000.00 Salaries expense 60,000 00 Rent expense 80,000.00 Deprecialion expanse 40,000.00 Uttes experise 20,000.00 Supplies expense 10,000.00 Transportation and travel espense 24,000.00 Insurance expense 150,000.00 Taxes and icenses 4,300.00 Interest expense 2,500.00 Miscellaneous epense 30,000.00 Loss on the sale of equipment
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 1.6C
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