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