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
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How to compute for Cost of Sales, Selling Expenses and Administrative Expenses and also how do I Present the Income Statement using Function of Expense method? Thank you. 

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.
Transcribed Image Text: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.
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