Flr, GF Partners Bldg, 139 H.V. dela Costa, Salcedo Village, Makati City
Flr. Equitable PCI Building, 2070 Claro M. Recto ,Manila Tel.7348895/7349198
Practical Accounting 1
Prof. Rommel M. Valdez
Income Statement – Part I
The following items were among those that were reported on Cyprus Co.’s income statement
for the year ended December 31, 2004:
Legal and audit fees
Rent for office space
Interest on acceptances payable
Loss on abandoned data processing equipment used in operations
The office space is used equally by Cyprus’ sales and accounting departments.
What amount of the above items should be classified as general and administrative expenses
in Cyprus’ income statement?
Information concerning the first month of operations of
Avon is presented below.
inventory system is used.)
Total purchases on account
Purchase returns on account
Total recorded as cash purchases
Purchase allowances on account
Inventory at the end of the month
Refunds for defective items purchased for cash
Error made by bookkeeper debiting supplies
expense for cash purchase of merchandise
The correct cost of goods sold is
The Do It Corporation presented the following income statement and statement of retained
earnings for the year ended December 31, 2004 as developed by its bookkeeper who has
completed 12 units of accounting.
Do It Corporation
December 31, 2004
Dividends declared (P3.50 per common shares)
Cost of goods sold