ASSET ( DEBIT NORMAL LIABILITIES ( CREDIT NORMAL OWNER’S EQUITY/
BALANCE) BALANCE) STOCKHOLDER’S EQUITY
( CREDIT NORMAL BALANCE)
Note: Contra Asset Accounts Note: Contra Asset Accounts
have Credit Normal Balance have Credit Normal Balance
CURRENT ASSETS CURRENT LIABILITIES FOR SOLE PROPRIETORSHIP:
CASH ACCOUNT PAYABLE OWNER’S CAPITAL
PETTY CASH FUND NOTE PAYABLE ( IF SILENT) OWNER’S WITHDRAWAL
( TEMPORARY ACCOUNT)
CASH EQUIVALENT ACCRUED EXPENSES
ACCOUNTS RECEIVABLE ACCRUED RENT/ RENT PAYABLE
NOTES RECEIVABLE ACCRUED SALARIES/ SALARIES
PAYABLE
ALLOWANCE FOR DOUBTFUL ACCRUED INTEREST/ INTEREST FOR CORPORATION
ACCOUNTS ( CONTRA-ASSET PAYABLE
ACCOUNT)
MERCHANDISE INVENTORY ACCRUED INCOME TAXES/ SHARE CAPITAL
INCOME TAXE PAYABLE
OFFICE UNEARNED INCOME/ DEFERRED SHARE PREMIUM
SUPPLIES/SUPPLIES/UNUSED INCOME/DEFERRED REVENUE
SUPPLIES
ACCRUED INCOME RETAINED EARNINGS
ADVANCES TO EMPLOYEES DIVIDENDS
PREPAID EXPENSES
NON CURRENT ASSETS NON CURRENT LIABILITIES
PROPERTY PLANT AND NOTES PAYABLE (LONG TERM )
EQUIPMENT ( It should be explicitly stated
BUILDING MORTGAGE PAYABLE
MACHINERY AND EQUIPMENT LOAN PAYABLE
FURNITURES AND FIXTURES BONDS PAYABLE
ACCUMULATED DEPRECIATION DISCOUNT ON BONDS PAYABLE
(CONTRA ASSET ACCOUNT) ( CONTRA ACCOUNT) ( Deducted
to compute for the Carrying
Amount of the Bonds Payable)
LAND ( Does not Depreciate) PREMIUM ON BONDS PAYABLE
INTANGIBLE ASSETS ( Patent, (ADJUNCT ACCOUNT) ( Added to
Copyright, Franchise Etc) compute for the Carrying
Amount of the Bonds Payable)
ABC COMPANY
STATEMENT OF COST OF GOODS SOLD
For the Month Ended March 30, 2020
MERCHANDISE INVENTORY, BEGINNING P XXX
ADD: COST OF GOODS PURCHASED:
PURCHASES XX
PURCHASE RETURNS AND ALLOWANCES XX
PURCHASE DISCOUNTS XX (XX)
NET PURCHASES XXX
FREIGHT-IN XXX XXX
TOTAL GOODS AVAILABLE FOR SALE (TGAS) XXX
LESS MERCHANDISE INVENTORY, ENDING (XXX)
COST OF SALES P XXX
Note: In some reference Net Purchases includes Freight-in. (Compute for the Net Purchases with and
without Freight-in and compare to the given options, if both are present choose the option excluding
the freight-in.)
ABC COMPANY
STATEMENT OF FINANCIAL PERFORMANCE
For the Month Ended March 30, 2020
NET SALES P XXX
LESS: COST OF GOODS SOLD (XXX)
GROSS PROFIT XXX
LESS: OPERATING EXPENSES (XXX)
NET INCOME/NET LOSS P XXX
ABC COMPANY
STATEMENT OF FINANCIAL PERFORMANCE
For the Month Ended March 30, 2020
SALES/GROSS SALES P XXX
LESS: SALES RETURNS AND ALLOWANCES XX
SALES DISCOUNTS XXX (XXX)
NET SALES P XXX
LESS: COST OF GOODS SOLD
MERCHANDISE INVENTORY, BEGINNING XXX
ADD: COST OF GOODS PURCHASED:
PURCHASES XXX
PURCHASE RETURNS AND ALLOWANCES (XXX)
PURCHASE DISCOUNTS (XXX)
NET PURCHASES XXX
FREIGHT-IN XXX
TOTAL GOODS AVAILABLE FOR SALE (TGAS) XXX
LESS MERCHANDISE INVENTORY, ENDING (XXX)
COST OF SALES (XXX)
GROSS PROFIT XXX
OPERATING EXPENSES (XXX)
NET INCOME/LOSS XXX
ABC COMPANY
STATEMENT OF CHANGES IN OWNER’S EQUITY
For the Month Ended March 30, 2020
OWNER’S CAPITAL, BEGINNING P XXX
ADD: ADDITIONAL INVESTMENT XXX
NET INCOME/PROFIT XXX XXX
TOTAL: XXX
LESS: WITHDRAWAL ( DIVIDEND in Corporation) (XXX)
OWNER’S CAPITAL, ENDING XXX
ABC COMPANY
STATEMENT OF COST OF GOODS SOLD
For the Month Ended March 30, 2020
MERCHANDISE INVENTORY, BEGINNING P XXX
ADD: COST OF GOODS PURCHASED:
PURCHASES XX
PURCHASE RETURNS AND ALLOWANCES XX
PURCHASE DISCOUNTS XX (XX)
NET PURCHASES XXX
FREIGHT-IN XXX XXX
TOTAL GOODS AVAILABLE FOR SALE (TGAS) XXX
LESS MERCHANDISE INVENTORY, ENDING (XXX)
COST OF SALES P XXX
Renante Balocating Manufacturers
Statement of Cost of Goods Sold
For the Year Ended Dec. 31, 2019
Direct Material Used:
Raw Materials Inventory, beginning Pxx
Add: Net Cost of Purchases:
Purchases – Raw Materials Pxx
Less: Purchases Return and Allowance Pxx
Purchases Discounts xx xx
Net Purchases Pxx
Add: Transportation In xx xxx
Raw Materials Available for Use Pxxx
Less: Raw Materials Inventory, end xxx Pxxx
Direct Labor xxx
Manufacturing Overhead
Indirect Labor Pxxx
Indirect Materials xxx xxx
Total Manufacturing Costs Pxxx
Add: Work in Process, beginning xxx
Total Cost of Goods Placed in Process Pxxx
Less Work in Process, end xxx_
Cost of Goods Manufactured Pxxx
Add: Finished Goods, beginning xxx_
Total Goods Available for Sale Pxxx
Less: Finished Goods, end xxx_
Cost of Goods Sold Pxxx
