Philippine Accounting standard The following information was provided for Macy company. The purpose of presenting these account balances is for you to prepare an income statement for the year ended December 31, 2018. Use the functional presentation and provide a supporting schedule or notes to financial statements. Make also a narrative description highlighting the importance of the information embodied herein to the users of financial statements. Sales 3,750,000 Depreciation-store equipment 35,000 Purchases 1,500,000 Office salaries 75,000 Direct Labor 475,000 Depreciation-office equipment 20,000 Indirect Labor 125,000 Depreciation-machinery 30,000 Superintendence 105,000 Sales returns and allowances 25,000 Light, heat and power 160,000 Interest income 5,000 Rent-factory building 60,000 Gain on sale of equipment 50,000 Repair and Maintenance-Machinery 25,000 Delivery expenses 100,000 Factory Supplies used 55,000 Accounting and legal fees 75,000 Sales salaries 200,000 Office expenses 125,000 Advertising 80,000 Earthquake loss 150,000 Gain from expropriation of asset 50,000 Income tax expense 160,000 Inventories: January 1 December 31 Raw Materials 100,000 140,000 Goods in process 120,000 85,000 Finished Goods 180,000 150,000
Philippine Accounting standard
The following information was provided for Macy company. The purpose of presenting
these account balances is for you to prepare an income statement for the year ended
December 31, 2018. Use the functional presentation and provide a supporting schedule or
notes to financial
statements. Make also a narrative description highlighting the importance of the information
embodied herein to the users of financial statements.
Sales 3,750,000
Purchases 1,500,000
Office salaries 75,000
Direct Labor 475,000
Depreciation-office equipment 20,000
Indirect Labor 125,000
Depreciation-machinery 30,000
Superintendence 105,000
Sales returns and allowances 25,000
Light, heat and power 160,000
Interest income 5,000
Rent-factory building 60,000
Gain on sale of equipment 50,000
Repair and Maintenance-Machinery 25,000
Delivery expenses 100,000
Factory Supplies used 55,000
Accounting and legal fees 75,000
Sales salaries 200,000
Office expenses 125,000
Advertising 80,000
Earthquake loss 150,000
Gain from expropriation of asset 50,000
Income tax expense 160,000
Inventories: January 1 December 31
Raw Materials 100,000 140,000
Goods in process 120,000 85,000
Finished Goods 180,000 150,000
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