Accounting Answers

Directions: Make a Statement of Comprehensive Income using the following format and calculated values:

The Mirriam Company has the following SCI balances at the end of the year. Prepare an
SCI contains the determination of net income and comprehensive income for the period.

Gross Profit = ₱ 2,580,750
Operating Profit = ₱ 1,554,330
Income Tax Expense = 25% of Operating Profit
Comprehensive Income = ₱ 2,000,000

Directions: make a Statement of Financial Position based on the given accounts below in
ACCOUNT FORM.

The Gelo Corporation has the following balances provided for the year 2020:
TOTAL ASSETS = ₱ 3,500,000
TOTAL LIABILITIES = 2,400,000
TOTAL CURRENT ASSETS = ₱ 2,350,000
TOTAL CURRENT LIABILITIES = ₱ 2,400,000

Accounts Receivable
Notes Payable
Unearned Revenue
Income Tax Payable
Comprehensive Income
Building
Land
Intangible Assets
Noncurrent Receivables
Owner’s Capital
Owner’s Withdrawal
Salaries Payable
Prepaid Expenses
Inventories
Interest Payable
Notes Receivable

Directions: Answer the following questions with the most correct answer whether the selection is in multiple-choice or supply the answer.

7. Suppose Ms. Ellana has to owe you money for selling goods on May 12, 2021 and she
will be going to pay only on November 2, 2021, prove that your accounts receivable is
current in nature.

8. What is the normal balance of Bonds Payable?

9. Differentiate a service, merchandising, and manufacturing entity by providing 2 examples
for each type of business.

Directions: Answer the following questions with the most correct answer whether the selection is in multiple-choice or supply the answer.

Cost of Goods Sold, (COGS), can also be referred to as cost of sales (COS), cost of revenue, or product cost, depending on if it is a product or service. It includes all the costs directly involved in producing a product or delivering a service.

5. Which of the following is the correct formula in finding COGS or COS?
a.The COS for manufacturing entities is zero because of its value in deflation.
b.The COS for merchandising entities is goods available for sale minus the ending
amount of inventories.
c.The COS for service entities is service available for sale plus the beginning
service inventories.
d.The COS for service entities is equal to the adjusted market selling price.

6. Explain why the three items you have not chosen above are incorrect.

Directions: Answer the following questions with the most correct answer whether the selection is in multiple-choice or supply the answer.

1. Which of the following attributes will classify an item which can be seen as a liability in
the Statement of Financial Position?
a.Expenses paid before the actual utilization
B. Expenses already utilized and paid for.
c.Expenses already utilized but have not yet paid for
D. All expenses cannot be classified as a liability component

4. If the normal operating cycle is 8 months to August 30, 2023, and the 12 months after the
reporting period will jump to the date of December 31, 2023, when is the threshold of
proving that the asset or liability is current? (Pick between August 30, 2023, and
December 31, 2023, only Explain your position.