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FABM2
Quarter 1 Module 2
New Normal ABM for Grade 12
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GRADE 12
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Learning Module for Senior High School Accountancy , Business and Management
Fundamentals of Accountancy, Business and Management 2 – Grade 12
Alternative Delivery Mode
Quarter 1 – Module 1: Statement of Comprehensive Income (Sole Proprietorship)
First Edition, 2020
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Writers: Khings Novie J. Soya
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Printed in the Philippines by ________________________
Department of Education
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Learning Module for Senior High School Accountancy , Business and Management
12
FUNDAMENTALS OF
ACCOUNTANCY, BUSINESS &
MANAGEMENT 2
Quarter 1 Module 2 Week 2
Statement of Comprehensive Income
(Service Concern)
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GRADE 12
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The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the module.
Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included
in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not hesitate to consult your
teacher or facilitator. Always bear in mind that you are not alone.
We hope that through this material, you will experience meaningful learning and gain deep
understanding of the relevant competencies. You can do it!
What I Need to Know
This module was written for you to accomplish at home. It was carefully
designed so that you can work at your own pace and allow self-discovery of the
concept through activities that you will perform. Activities were also selected to allow
independent learning which also aims to develop students’ reading comprehension
skills through understanding written texts.
After going through this module, you are expected to:
1. Identify the elements of the Statement of Comprehensive Income and describe
each item for the service business;
2. Prepare a Statement of Comprehensive Income for service business,
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_Learning Module for Senior High School Accountancy , Business and Management
What I Know
As a prerequisite to FABM2 is FABM1. You must recall through your stock
knowledge the Elements of Financial Statements. The basic purpose of accounting
is to provide information that is useful for making economic decision Accounting
information is most commonly communicated to users of accounting information
through the financial statements.
Instruction: Fill in the blank with the correct answer (Critical Thinking,
Communication and Collaboration)
_________ 1. Formerly known as Income Statement.
_________ 2. The excess of revenues over expenses
_________ 3. Refers to proceeds from the sale of merchandise.
__________4. Shows the results of operation of the business for a given period of time.
__________5. Also known as nominal accounts.
__________6. The two elements of financial statements for SCI
__________7. Includes Salaries and Utilities
__________8. If expenses is more than net income.
__________9. Includes rental revenue, sales, and service income
__________10. Best approach for a single proprietorship business
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Check your answer:
1. Statement of Comprehensive Income
2. Profit
3. Income/Revenue
4. Statement of Comprehensive Income
5. Temporary Accounts
6. Income and Expenses
7. Expenses
8. Loss
9. Income
10. Single Step Approach
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Instructions: Write True if the statement is correct and False if the statement is
incorrect (Collaboration)
__________1. The revenue earned by a service business for rendering services for a fee
is commonly referred to as Service Income or Service Revenue.
__________2. A Statement of Comprehensive Income may be presented using a
“multiple – step statement “ presentation only?
__________3. Revenue includes both income and gains.
__________4. If expenses are greater than income, the difference is net loss.
__________5. The Revenue earned by the merchandising business from its sales of
goods is commonly referred to as sales.
___________6. Income increases economic benefits during the period in the form of
inflows of cash from rendering services.
___________7. The Statement of Comprehensive Income shows information on an
entity’s financial performance during the period.
___________8. A Statement of Comprehensive Income that shows expenses by its
function is referred to as prepared using single-step approach.
___________9. Expenses encompasses both expenses and losses.
___________10. The statement of profit and loss and other comprehensive income is
synonymous to the income statement.
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MODULE 2
Statement of
Comprehensive Income
A Statement of Comprehensive Income consists of all revenues, gains and losses
that cause that equity account to change at the end of the accounting period. They
are nominal accounts or temporary accounts because at the end of the accounting
period, balances under these accounts are transferred to the Capital Account, thus
having only temporary amounts and resulting to zero as the balances at the
beginning of the following year.
The elements of Comprehensive Income are as follows:
1. Heading is compose of company name , the SCI title and the date starts with for
the period ended (date)
2. Income are increases in economic benefits during the period in the form of inflows or
enhancement of assets or decreases of liabilities that result in increases in equity ,
other than those relating to investments by the business owners.
3. Expenses are decreases in economic benefits during the period in the form of
outflows or depletions of assets or increases of liabilities that result in decreases
in equity, other than those relating to distributions to the business owners.
4. Net Income? (Net Loss) is the result of operation. If the income is greater than the
expenses, then the result in net income while if the expenses are greater than
income, then the result is net loss.
Under the nature of expense method, expenses are presented according to
their nature (for example, depreciation, purchase of materials, transport costs, employee
benefits and advertising costs) and are not reallocated among their functions within the
entity. This method is easy to apply because no reallocation of expenses is necessary.
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GRADE 12
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What’s In
A SCI shows expenses by their nature is referred to as Single-Step
Approach
AYOS Company
Statement of Comprehensive Income
For the period ended December 31, 2019
Income
Expenses
Profit for the year
Other Comprehensive Income
Total Net Income
Php5,000.00
(1,500.00)
Php3,500.00
500.00
Php4,000.00
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Shown below is the format of statement of comprehensive income with proper label
of its elements:
ADRIAN TRANSPORT
STATEMENT OF COMPREHENSIVE INCOME
For the period January 31, 2020
Service Revenue
HEADING
Php50,000.00
Expenses
Salaries Expense
Rent Expense
Utilities Expense
Php15,000.00
10,000.00
5,000.00
Net Income/(Net Loss)
Add Other Comprehensive Income
Total Net Income
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30,000.00
Php20,000.00
4,000.00
Php24,000.00
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NET INCOME
GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
What’s New
Activity 1 Now that you have read the brief introduction of Statement of Comprehensive
Income you can answer the statement below. Write the correct word or words to complete
the statement.
_______1. An example to this is gains or losses on hedging derivatives
_______2.An approach used on preparing statement of comprehensive income that shows
expense by its nature.
_______3.An increases in economic benefits during the period in the form of inflows or
enhancements of assets or decreases of liabilities that result in increases in equity
_______4.This occurs when revenue is less than expenses.
_______5.It arises in the course of the ordinary activities of a business and is referred to
by a variety of different names including sales, fee, interest, and etc.
_______6.The difference between an Income Statement and SCI …
_______7.The nature of business for a single step statement of comprehensive income
_______8.The nature of business for a multi-step statement of a comprehensive income
_______9.the expenses to be given to the company’s employees for the services they
have rendered.
______10.The expenses usually referred to by Zaneco, NAWASA and PLDT
Activity 2. Solve for the unknown (Remember the formula Income minus
Expenses plus Comprehensive Income is equal to Net Income or Net Loss)
1.
Service Income
???
Expenses
2.
(Php10,000.00)
Net Income/(Net Loss)
Php25,000.00
Service Income
Php35,000.00
Expenses
(Php15,000.00)
Net Income/(Net Loss)
Php20,000.00
Other Comprehensive Income
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Php5,000.00
GRADE 12
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Comprehensive Income
3.
???
Service Income
Php65,000
Expenses
???
Net Income/(Net Loss)
Php18,000
Other Comprehensive Income
4.
Comprehensive Income
Php20,000
Service Income
Php58,000
Expenses
(Php38,0000)
Net Income/(Net Loss)
5.
2,000
???
Other Comprehensive Income
Php10,000
Comprehensive Income
Php30,000
Service Income
Php80,000
Expenses
(Php120,000)
Net Income/(Net Loss)
______________
What’s More
Directions: Analyze the transactions of Tiny Bubbles Co, put an emoji
smiley if it
is part in the preparation of Statement of Comprehensive Income and NA if it is not part in
the preparation of SCI.
Tiny Bubbles, a parlor owner, asks you to prepare her statement of comprehensive income
for the month of August with the following transactions.
1. Her company has cash deposited in a bank account amounting to
P50,000 as her initial capital
2. She bought parlor furniture set amounting to Php75, 000.00 by paying 20% down
and the balance in 12 monthly installments.
3. Supplies expense for the month is Php20,000.00
4. She paid two month’s rent amounting to Php24,000.00
5. Her total income for the month of August is Php120, 000.00 cash.
6. She paid one staff for Php5,000.00 a month
7. The business paid Php4,500.00 for the light, water and internet connection.
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
8. She has trade receivables amounting to Php25,000.00 for services rendered
9. She had a loan from the bank amounting to Php100,000.00 to be paid in 5 years
10. Paid transportation expenses amounting to Php2,500.00.00
Note: If you failed to score at least
four (4) out of five (10), please read
again…
What I Have Learned
Directions: Prepare a Statement of Comprehensive Income for the following
independent transactions. Use your surname as your company name.
1. Service Revenue Php95,000.00; Salaries Expense Php5,000.00; Transportation
Expense Php15,000.00; Rent Expense Php20,000.00; Utilities Expense
Pph3,000.00; Other Comprehensive Income is Php8,000.00
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
♥♥♥What I Need to Reflect (Character)
You must buy only the important and the basic needs of the family or buy assets
that has economic benefit in the future, when you don’t have cash do not
borrow money just to acquire it. However, if you have more than enough for
your family, why not think of donating something for the less fortunate
specifically this pandemic situation.
What I can Do
Practice makes perfect!
. You can prepare an SCI
. (Collaboration and Critical Thinking)
1. Salaries Expense Php25,000.00; Transportation Expense Php1,000.00;
Rent Expense Php10,000.00; Utilities Expense Php5,000.00; and Service Revenue
is Php40,000.00.
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
Assessment
Prepare a Statement of Comprehensive Income
1. Service Revenue Php95,000.00; Salaries Expense Php5,000.00; Transportation
Expense Php15,000.00; Rent Expense Php20,000.00; Utilities Expense
Pph3,000.00; Other Comprehensive Income is Php8,000.00
References
Books:
Ferrer, R & Millan, Z. V. (2017). Fundamentals of Accountancy, Business &
Management Part 2. 1st Edition
Haddock, M., Price, J., & Farina, M. (2012). College Accounting: A Contemporary Approach,
Second Edition. New York: McGraw-Hill/Irwin.
Valencia, E. G., & Roxas, G. F. (2010). Basic Accounting (3rd ed.). Mandaluyong City,
Philippines: Valencia Educational Supply.
Teaching Guide in Senior High School Fundamentals of Accountancy Business and Management
2, donated by the Commission on Higher Education in Collaboration with the Philippine Normal
University to Department of Education
Websites:
https://asia.nikkei.com/Spotlight/Coronavirus/Manila-lockdown-cripplesbusinesses-big-and-small
https://soffront.com/blog/best-tips-run-business-time-lockdown/
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
Additional Activities
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
Answer Key
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What I can do : True or False
1. True
2. False
3. True
4. True
5. True
6. True
7. True
8. False
9. True
10. True
What’s new..: activity 1:
1. Comprehensive Income
2. Single Approach
3. Income
4. Net Loss
5. Revenues
6. None
7. Single Proprietorship
8. Merchandising
9. Salaries Expense
10. Utilities expense
Activity 2
1. Php35,000.00
4. P20,000.00
2. Php25,000.00
5. (Php40,000.00)
3. Php47,000.00
What’s more…
Numbers 1, 2 and 9 =
NA
Number 3 to 8 and 10 =
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GRADE 12
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_Learning Module for Senior High School Accountancy , Business and Management
What I can do …
Company Name
Statement of Comprehensive Income
For the period ended _____
Service Revenue
Rent Expense
Salaries Expense
Php40,000.00
Php10,000.00
25,000.00
Utilities Expense
Transportation Expense
Net Loss
5,000.00
1,000.00 (Php41,000.00)
(Php1,000.00)
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Assessment:
Company Name
Statement of Comprehensive Income
For the period ended______
Service Revenue
Rent Expense
Salaries Expense
Utilities Expense
Transportation Expense
Net Income
Comprehensive Income
Net Comprehensive Income
Php95,000.00
Php20,000.00
5,000.00
3,000.00
15,000.00
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43,000.00
Php52,000.00
8,000.00
PHP 60,000.00
============