Looking for an expert Accounting Tutor thank you TIPS: 1. Get the Cost of Goods Sold (COGS) - compute for it, andyan yan. Compute for this first. 2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income Additional reference: SINGLE STEP APPROACH that your going to use
Looking for an expert Accounting Tutor thank you TIPS: 1. Get the Cost of Goods Sold (COGS) - compute for it, andyan yan. Compute for this first. 2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income Additional reference: SINGLE STEP APPROACH that your going to use
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Looking for an expert Accounting Tutor thank you
TIPS:
1. Get the Cost of Goods Sold
(COGS) - compute for it, andyan yan. Compute for this first.
2. The rest of the account titles, identify if it is revenue or expense. Then plot to income statement to get the net income
Additional reference:
SINGLE STEP APPROACH that your going to use

Transcribed Image Text:Illustration: SCI of a merchandising business
The trial balance of ABC Co. on December 31, 20x1 shows th.
following information:
Dr.
Cr.
Accounts
P900,000
Sales
60,000
20,000
Interest income
Gains
P50,000
200,000
10,000
Inventory, beg.
Purchases
Freight-in
Purchase returns
5,000
7,000
Purchase discounts
Freight-out
25,000
Sales commission
30,000
Advertising expense
Salaries expense
Rent expense
Depreciation expense
Utilities expense
15,000
300,000
30,000
40,000
20,000
10,000
Supplies expense
Transportation and travel expense
Insurance expense
5,000
12,000
Taxes and licenses
70,000
Interest expense
Miscellaneous expense
Loss on the sale of equipment
2,000
1,000
15,000
P835,000
Totals
P992,000

Transcribed Image Text:Additional information:
a. Ending inventory is P80,000,
b. One-half of the salaries, rent, and depreciation expenses pertain
to the sales department. The sales department does not share
in the other expenses.
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