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Introduction to Accounting II

Section (1)

CHAPTER 5 Assistant lecture Mona shemes

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Types of Company

Service Company الشركات الخدمية

Merchandising Company

الشركات السلعية

Provide services توفير الخدمات

Buy and sell goods to consumer تبيع السلع والخدمات للمستهلكين

period

Expense Sales Revenue

Cost of Good Sold Operating Expense مصاريف التشغيل التكلفة المرتبطة مباشرة بتحقيق الايرادات من المبيعات

Sales Revenue - Cost of Good Sold = Gross Profit

Gross Profit - Operating Expense = Net Income/ Loss

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Ex (1)

If sales revenue 480000, and sales return 12000 and customer

receive sales discount 8000 calculate Net Sales ?

Sol

Sales Revenue :

Sales 480000

Less: Sales return (12000)

Sales discount (8000)

Net sales 460000

Ex (2)

If net sales 460000 and cost of good sold 316000 calculate

Gross profit?

Sol

Net sales 460000

Less : Cost of Good Sold (316000)

Gross profit 144000

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Ex (3)

If Gross profit 144000 and Net Income 30000 calculate

operating expense?

Sol

Gross profit 144000

Less: operating expense ??????

Net income 30000

Operating expense = Gross profit - Net income

= 144000- 30000

= 114000

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Ex (4)

If sales revenue 3800, and sales return 300 , Cost of Good Sold

100, operating expense 200 calculate Net income?

Sol

Sales Revenue :

Sales 3800

Less: Sales return ( 300)

Net sales 3500

Less : Cost of Good Sold (100)

Gross profit 3400

Less: operating expense (200)

Net income 3200

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Ex (5)

If sales revenue 11400, and supplies expense 1400 ,

depreciation expense 250, insurance expense, 250, salaries

expense 6000, rent expense 1000, utilities expense 150 ,

prepare income statement for the month ended june, 30, 2017

Sol

Revenue:

Sales revenue 11400

Less: expense

Supplies expense 1400

Depreciation expense 250

Insurance expense 250

Salaries expense 6000

Rent expense 1000

Utilities expense 150

(9050)

Net income 3130

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