The following information were taken from the books of Fishman Island Sport Store that sells different kinds of swimming gears and accessories: Sales Returns & Allowances |Freight In Commission Expense Purchase Returns & Allowances Merchandise Inventory, Dec. 31 Freight Out Merchandise Inventory, Jan. 1 HDMF Premium Expense SSS Premium Expense PHIC Premium Expense 4,000 Purchase Discount 8,000 Communication Expense 30,000 Sales 7,500 Purchases 95,000 Sales Discount 11,000 Rent Expense – Showroom 78,500 Sales Salaries Expense 1,826 | Taxes & Licenses 3,088 | Depreciation Expense – Office Furniture 1,200 | Interest Expense 6,000 45,000 540,000 112,000 25,000 20,000 91,300 10,170 16,500 3,500 Requirement: 1. Compute for Cost of Sales, Selling Expenses and Administrative Expenses. 2. Present the Income Statement using Function of Expense method.

The following information were taken from the books of Fishman Island Sport Store that sells different kinds of swimming gears and accessories: Sales Returns & Allowances |Freight In Commission Expense Purchase Returns & Allowances Merchandise Inventory, Dec. 31 Freight Out Merchandise Inventory, Jan. 1 HDMF Premium Expense SSS Premium Expense PHIC Premium Expense 4,000 Purchase Discount 8,000 Communication Expense 30,000 Sales 7,500 Purchases 95,000 Sales Discount 11,000 Rent Expense – Showroom 78,500 Sales Salaries Expense 1,826 | Taxes & Licenses 3,088 | Depreciation Expense – Office Furniture 1,200 | Interest Expense 6,000 45,000 540,000 112,000 25,000 20,000 91,300 10,170 16,500 3,500 Requirement: 1. Compute for Cost of Sales, Selling Expenses and Administrative Expenses. 2. Present the Income Statement using Function of Expense method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

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The amount recorded for net cost of purchases includes all of the following EXCEPT: Purchase discounts. Freight costs paid by the seller. Returns and allowances. Freight costs paid by the buyer.