Hello Ma'am. Hello Ma'am, good morning. Kamusta po kayong lahat?
Kamusta po kayong ngayong Friday, business Friday po natin ngayon and this is a very experience for everyone. Bago po tayo magsimula, I would like to acknowledge of course the presence of my mentor, Tutor Carol. Kamusta po kayo Ma'am?
Mabuti naman po Ma'am. Okay po. Marami pong salamat. Ganun po talaga siguro pag first time, medyo talagang may jitters po. Pero I'm very glad and very privileged because I was given a chance po na makatulong at of course to itulay ang koedukasyon sa pamamagitan po nitong ating program na po na ito.
So anyway po, maraming maraming salamat. Bago po ako magsimula sa aking topic for today, alam po po na excited po ang bawat. teacher po dyan na nandyan dyan po sa atin.
Sige po, magtingin po muna ako ng aking mga, ayan, ang dami ko po mga, hello po sa mga viewers po, Mam Mira Lloyd Tantiado, Gabriel Holanda, marami pong salamat for being with us today with Ma'am Carol also at the same time po. Ayan, enjoy lang po natin to, alam ko po na lahat po tayo ay naninibago dahil po, because of the, it's first week. of our our itulayan at the same time first week of classes po kaya medyo talagang lahat eh medyo mayroong jitters na tinatawag po natin anyway so i would like to acknowledge also the senior high school from malabo national high school kamusta po kayong lahat magsana po ay samahan niyo po kami ni ma'am carol hanggang po sa huli po hanggang sa pinaka last lesson po namin na ito Sige po, let's start na po. Ako po ah, okay. Anyway, I will also introduce myself.
I am Tutor Carmi. I will be with you for Fundamentals of Accountancy, Business and Management 2. This is for Grade 12 students. I invite our Grade 12 teachers from ABM, Accountancy, Business and Management.
Join us. Let's learn. Let's be together to teach education to our learners.
Sige po, I will start now our lesson. So unahin po, yung lesson po natin ngayon ay about Statement of Comprehensive Income Single Step. Sa accounting po, meron din po tayong multiple step and single step po. Parang dance lang din po yan, no?
So let me share with you my screen. So for our lesson objectives for today, We are going to identify the elements of SCI or Statement of Comprehensive Income and describe each of these items for a service business and prepare an SCI for a service business using the single-step approach. So, if you noticed, we already, of course, have a knowledge before in our FABM-1, we already made Thank you. financial statement but from the for this episode we are going to hihimayin po natin, bibigyan natin ng emphasis yung financial statement po na ating pag-aaralan so sige po okay po ma'am Carol let's start na po for yes tutor carmy go thank you ma'am okay ang statement of comprehensive income is considered awesome and known also as income statement.
The name has changed because of the Philippine financial reporting standards. Before, it was called income statement when it was in the GAAP. But still, it has the same elements.
It is a financial statement that provides information about the entity's past performance. It is like a report card. If we are students, we are We are grading our teachers and we can see our performance through the report card that was given to us.
In companies and businesses, their basis of knowing their performance is of course is the statement of comprehensive income or the income statement. So, it is... Yes, ma'am. In addition po, ma'am, dun sa name, bagong name ng income statement, in other books kasi, it's statement of performance. Yes, ma'am.
Merong book din na gumagamit ng statement of profit and loss. Yes, ma'am. Tama po. So, marami siyang...
Nag-evolve din yung name niya. Pero, income statement po yun. Yes, tama po.
That's right, ma'am. That's also one of the things I want to mention. There's a statement of financial purpose, they call it FFP. But still, it has the same elements.
Don't get confused. It just evolved because of the standards of the accounting, but still, it has the same purpose. The purpose is, of course, to give information of the performance of the business.
So The purpose of a Statement of Comprehensive Income is to give measure of result of entity's operation. We can see here how good the flow of the operation is. We know that we are in a good position or our performance is good if our revenue is high, if our expenses are low. Now, so alamin po natin yung mga elements po ng Statement of Comprehensive Income. So the same naman po yan, dun po sa income statement, sa Statement of Profit and Loss, sa Statement of Financial Performance, yan.
So same pa rin po yan, we have the revenue and the expense. Alam ko po sa ano po kayo na-explain po yan sa inyo ng ano po yung nature ng revenue. So when we talk about revenue, we are referring to the revenue or income earned or generated by the business in rendering services to its customer and clients.
So ito po yung ating kinikita. Ito po yung kinita po natin, ibinibigay po sa atin. Okay po, ito po yung ibinibigay po sa atin kapag tayo po ay nagre-render ng service.
this and then um when we talk about expense we are referring to the company's expenses you know in a company, it is not allowed to operate or you cannot earn without spending so there is always a balance between revenue and expense are together and you cannot you can just control the expense okay and Of course, we don't want to control our revenue. We want our revenue to flow. So, the expense is what we spend during the operation of the business. Okay? So, these are the end products.
When we talk about net profit, we are referring to if the revenue is greater than expense. So, we know that a company or a business performed well if the revenue is greater than the expense. Of course, there are also possibilities that we incurred loss in a company. We cannot avoid that. That is why the financial statement is given to the companies.
Sometimes, they ask for a report of SCI. quarterly, semi-annually. That's what financial aid means. Annually, that's what it means.
So that they can see and check their performance. And through that, they were able to do a strategy and able for them to come up with a revenue. Okay?
And then, how do we have net loss? Ang net loss po kapag po ang ating expense is greater than our revenue. So, it means that we have more expenses, we just put effort, but we did not earn anything.
And that is a very sad point in a company. That's why this statement of comprehensive income is always held by marketing people or marketing department because through this, they can come up with their sales strategies. Okay, kasi... They will find a way to have more sales.
We spend a lot of money instead of having a lot of revenue. As a businessman, businesswoman, or business teacher, we should always look at how our company performs. We can only see that through looking at our SCI or Statement of Comprehensive Income.
Okay, next po. Ayan. So medyo marap na parami po ang aking mga kwento.
So I think this will help us para mas maintindihan po natin. So sige po, titignan ko po. Ayan, let us practice.
Choose the letter of the correct answer. So, we can answer these four questions that I have prepared for you. Okay? I think you already have the... This is just a review of your FABM-1.
Okay? It's like your theory of accounts. Okay, number one. Siana, I have some questions that I can answer.
Okay? Let's try to answer this. And then I will reveal to you the answer also.
Okay, yes. While we were talking, there's a question for number one. Okay, I think you got the answer.
It's embarrassing if it's not. Let's acknowledge the goodness of Ms. Carol Tofino-Santos. Okay, let's see the answer.
Okay, let's answer. So let's have number one. Which of the following is an expense account? Ang sabi ni Ma'am Carol, it is letter B. It is an expense account.
It is letter B. It is salaries expense. Tama po ba?
Is that the correct answer? Yun. Very good.
Yes, it is considered as an expense. It is part of the expense in the operation of the business. Okay, let's have...
Okay, sa habid ni Ma'am Susan Garcia. Okay, tama, lahat sila. Si Ma'am Mira, si Ma'am Susan.
Yan, maraming salamat po for answering the questions. Now, let's have number two. Which of the following account is not a revenue account? Hindi daw po siya revenue account. Ayan, we have the professional fee.
We have the service income. We have the letter C is unearned income. Okay? Mukhang may nakakuha na ng sagot si Ma'am Mira. Thank you, Ma'am Mira, for answering our questions.
At si Ma'am Susan din po, maraming salamat sa aking mga kasama po na nagsasagot po. Ay, ay, ang dami na. Si Ma'am Fatima din po, sabi niya, letter C is considered as not a revenue account.
Let's see po kung tama po yung answer natin. Yes, unearned income is considered as a liability account. Yan, thank you.
Thank you so much po sa mga nag-answers. So let's have number three. The total revenue is P250,000 and the total expense is P50,000. How much is the business earnings? Sige nga po.
Mapapamat tayo dito. Ayan. Sige po.
Sino po ang gustong sumagot? Ayan, si Mamira. Letter number three daw po. Ay letter C. Okay, that's a tricky answer.
We're still on the single step, mga mama. Okay. The answer for this, mukhang ano. Yes, mga.
Maybaka namin nakakuha na ng sagot. Si Ms. Cecil Placino Pagana. She answered letter B.
Tama ba? Yes. Tricky lang po yung answer, pero po, letter B po yan.
Net profit po tayo. Okay? So, mamaya po, ma-explain ko po yan kasi nasa single step pa lang naman po tayo. Then. Number four, if the business incurred losses, what does it mean?
Kung daw ang business ay nag-incurred ng losses, what does it mean? Ayan, sige, sige. Anong ibig sabihin po?
Kung ito, kung ang business daw ay nagkaroon ng naglalugi, ano nangyari? Letter A, expense is greater than revenue. Letter B, the revenue is equal to expenses.
Letter C, the revenue is greater than its expenses. Letter A. Tama. Tignan nga natin.
Ayun. Tama po. Letter A po.
The expenses is greater than revenue. That is the reason that the company or an entity incurred losses. Yan. Salamat po.
Now, let's have now po the pro forma. Eh paano ba tayo nagpe-prepare ng ating income statement or ng ating statement of comprehensive income with whatever name you called it? Paano ba natin siya pineprepare? Now, okay, yan.
So, we are going to prepare po yung pinaka-basic po na statement of comprehensive income, which is the single step. Okay, when we talk about single step presentation, this is usually used by the service entity. It means one deduction of all the expenses from total revenues to arrive to the net income. So, napakadali po ng, kung titignan natin, piniformulate pa nga po nila yan.
Okay, that is, yan, para po sa mga service business. Yung mga service business po, yan yung mga business po na nagbibigay ng services like massage, barber shop, yan, mga accounting firm, yan, mga nagsuservice po yan. Ano pa ba, mga audit firm, yan po, usually service business po sila. Statement of comprehensive income is the proforma or what we call the format. We need to follow the format and we should not forget the format because this is the standard.
Accounting is more like a standard. That's why sometimes we think about our own thoughts, It does not violate the standard of accounting. Kahit sabihin pa natin na tama tayo but if it is not in the standard of accounting or it is not written in the standard of accounting, well then we have to follow the standards. Okay?
Revenue for services. Okay po yan po tatandaan po natin. We just have to recognize the revenue that we got from our services.
Then iles lang po natin. Les meaning i-deduct po natin ang ating expenses. And this will equal. equals to profit and loss. Profit or loss.
But we all want to do business. Our objective is to gain profit. There is no business that they want to have a loss.
So, that's it. Let's have another slide. How are we going to prepare the SEI single step?
Prepare the heading. It is important that we prepare the heading of the company. this represents the company. Parang pinakapangalan po kasi nila yan eh. And alam naman po natin yung business entity concept, di ba?
Our personal name is actually different from our personal, from our business name. So prepare the heading derived from the business name with the name of the financial report and the reporting period. Importante po yan.
If you see the format of our SCI, it is always pyramid-style. It is like this. This is its style. For example, Kutitap Alitaptap Law Office Statement of Comprehensive Income, let us not forget the period from which this report was made. For the year ended December 31, 2020. So, what will we do next?
Once we know or once we're done with our heading, let's have now the classification of whether it is of the accounts, whether it is a revenue or expense. It is important that we know what our revenue is. This is very simple but sometimes even if they are a service company, they have a lot of other income. Okay, but For this example, we have the professional fee as our revenue.
Yes, ma'am. Tutor Carmi, and also in addition to that, trial balance. Before we can prepare our financial statements, we need to prepare our trial balance.
So the amounts... na nakalagay sa ating Statement of Comprehensive Income ay pwede na rin nating kuhain sa trial balance. Yes, ma'am.
Tama po. For ease of preparing. Yes, tama po yun.
Totoo po yun, ma'am. Kasi po, yan po ang magiging basis po natin ng ating mga amounts na ilalagay po natin sa ating report, sa ating Statement of Comprehensive Income. Thank you po, ma'am, for that another information. Next, we have classified the accounts.
It is easier for you to classify accounts if it is already in the trial balance. Because it is already formed. We have to understand what is the revenue.
This is our revenue, the professional fee. And then expense. soul It's easy to understand what the expense is.
But one tip for you, not all of the income or expenses are considered the nature of that account as expense. It's income. Like earlier, the unearned income, accrued expense. Some might be surprised, why is it called expense?
That's what it should be. Prepaid expense. Yes, prepaid expense. Yes, ma'am, the prepaid expense because prepaid expense is considered as an asset.
E expense pa makalagay. Nako, may mga studyante po ako na ganyan. Ma'am, hindi, prepaid expense ilagay eh. Ganun yan. That's the beauty of accounting.
So, grabe siya na parang doon kanya nililito. Pero kailangan mo lang you have to know the nature and the theories of that account. Okay? Sige po. Let's have step three.
Calculate the total revenue of our expenses. It is very easy to calculate here because it is only a professional fee. It is only a means of revenue.
So that is 500,000. And then our expenses, let's just say the total. The good thing about accounting is that they said you don't need to use a scientific calculator. A basic calculator is actually, we can use it.
In CPA board examinations, basic calculator is used. Calculators with many holes are prohibited. Scientific calculator. Yes, very good.
Thank you. Scientific calculator is not used. Basic calculator. Because that's what you will do. You just have to analyze.
because you can't do it if magkakapag plus, minus, or the four operations po, hindi mo magagawa yan as long as na hindi mo naman alam kung ano yung standards. Ayan. Let's help lang po. Nakalculate na natin yung revenue. Nakalculate na po natin yung ating expenses.
Ayan. Ito na po yung magiging itsura ng ating statement of comprehensive income. So, nilest lang po natin yung revenue, nilest natin ng expenses, and then nagkaroon po si... Kutitap Alitaptap Law Office ng net profit ng P400,000.
Ayan. So, madaling-madaling, kayang-kaya. Alam ko po na hindi po kayo mahihirapan. Basta sundin lang po ninyo to.
This is the beauty and the advantage po ng ating technology ngayon. Andami pong means, andami pong way para po tayo ay matuto. Ayan. And also, Tutor Carmi, they can use the... open close parentheses to signify subtraction.
Ako kasi sa students ko, sabi ko, pag walang nakasulat na less at merong open close parentheses, ibig sabihin you have to subtract. Isa pa po pala na tip. Alam niyo po, gaya gaano katama po lahat ng ginawa nating report, pag hindi po natin dinobol rule.
The final answer, it means nothing follows. We accountants before, when we check our reports, looking at that, if we see that there's no double rule, we ask, what's next? We're like that in the company. We ask, is there anything next?
Because that means that is your final answer. Nothing follows. Yes, nothing follows.
That's right. So, what you see in the memes, that's true. Kahit po gaano katama ang ating answer, if you don't do the double rule, na mamali po yun o kaya minsan nababawasan. Depende na po yun sa inyong teacher or sa prof po ninyo.
Okay? Sige po. Ang double rule po ay ilalim ng 400,000.
Yes po. Kailangan po may double rule. If that's the final answer.
Yes, ma'am. Thank you, ma'am. Ayan.
Tama po yun. Let's have now. the exercise. Kanina nag-practice ka tayo. Now let's have a practice, let us practice more.
So I will read to you the problem, tas mamaya sasagutin natin siya. Mag-prepare po tayo ng statement of comprehensive income, single step po. So the following are the consolidated accounts of Kevin Manuel Accounting Services for the year 2020 ending December 31. Supply the correct amount and account. to prepare the firm's comprehensive income and determine whether the firm gained an income or incurred losses.
So, ito po, ito po mga consolidated accounts na ito po, ito po tulad na sinabi ni Ma'am Carol kanina, it comes from the trial balance. Pero medyo ginulo ko na ng konti siya para tignan ko talaga kung naalala po ninyo yung format ng ating financial statement. So, sige po.
Meron po akong working table po dito na pwede po nating check kasi yung binigay ko po na example po dyan. I know you need upon the trial balance or consolidated accounts and the don't push us so let's yeah I sorry yeah I keep on a puba yeah so see people answer on puna team una have a pool of answer put a yo balik balik put a sattin boom Yan. Yan.
Sa ating mga, yan, Mother Pune Enzem Remzem Kalika. Hello po, Ma'am Marychelle Picaio. Yan.
And then we have Loreto Capintin. Good morning, good afternoon na po. Lunchtime na po.
Konting-konti na lang kakain na tayo ng lunch kay Lucky Pearl Evarista Valuzola. Hello po, kamusta po kayo? Okay.
Siguro po, maganda po kung sasagutan na po natin. Let's... Try answering our exercises, our practice exercise. So, ano po kaya ang tingin po natin na sagot sa ating number one?
Okay, coming from Ma'am Carol again, one professional fee, four million. Tignan po natin kung tama po si Ma'am Carol, no? Yan, tama po.
Very good. Ma'am, yan. Tama po yan, no?
That is 4 million. That is, nakuha po ni Ma'am Carol yan from our consolidated account coming from our trial balance. Now, so we already determined what is the revenue.
Now, let's have now the expenses. Sige, tignan po po yung mga answers po nila. Okay, retainer fee, tama po yun. Okay, sige po. Sa number 2 po natin kaya, ano po ang sagot?
Okay, let's reveal the answer po sa ating number 2. Dahil po ito ay 100,000, makikita po natin ano po yung account na naghahalaga po na 100,000. It's tama. Tignan niyo po kung tama po yung sagot natin.
Magkaparehas po tayo. That's in salaries expense. Yan po ang sagot po ninyo. tama po ang inyong sagot.
Now, let's have number three. Okay? So, sa number three po, rent expense po. Magkano po daw ang naging rent expense for that particular period from the year end of December 31? How much is the total rent expense?
Mukhang titignan ko. Ayan, mukhang mo ano. Let's have. Okay, number three po ay... 200,000.
Let's check your answer if we have the same answer. If your answer is 200,000, you are correct. Okay, number four.
Yan, para po ano. So sa number four po natin, that is 50,000. What account po ang nagkakahalaga ng 50,000?
Sige. Mukhang. okay let's reveal the answer supplies expense that is also your answer, your answer is correct supplies expense so the depreciation expense that is considered as a bonus you already have a correct answer usually we give bonus bonus so let's have number five Number 5 is 180,000. What account is worth 180,000?
Let's see if we have the same answer. Utilities expense. Correct. It seems like many of you got the correct answer. And how about our next one?
Insurance expense. Magkano po ang ating insurance expense based on our trial balance? Let's see if your answer is correct.
Yes, it's 200,000. Okay, thank you. Okay, let's have now the total expenses.
Let's see how much are the total expenses of Mr. Kevin Manuel Accounting Services. sige tignan po natin if you if we have the same answer let's check po if you are going to add all the expenses the total expenses of kevin manuel accounting services is pare payas po ba tayo ng sagot it's 850,000 yes so for our net profit tignan po natin sa tingin po ba ninyo What was the increase? Did the net profit increase?
incurred by the law by Kevin Manuel. Okay, we can see that. We can see that. We can also see that.
Okay. Let's reveal our answer. Yes, according to Mamira. Thank you, Mamira, for that answer.
Your answer seems right. Mamira, that is 3,100,000. fifty thousand. So we can conclude that Kevin Manuel performed very well for the year end of December 31, 2020 because he gained profit.
So that when we see his report, this is what it looks like. So that's right, that's how to make a comprehensive income. single step, natakadali po at kayang kaya po natin talaga siyang gawin.
At kahit po sa mga businesses po ninyo, you can apply this one. Ang kagandaan po sa accounting, nagagamit po talaga natin siya. Okay?
Yan. Po, Ma'am Carol, nakaano na po tayo. Maraming maraming salamat po.
I hope that everybody enjoyed. Accounting is one of the things that our students are afraid of. But I always tell them to enjoy it because the moment that you enjoy doing something, it is the moment that you learn. And this is the moment that when we love something, we also love it.
Thank you very much to Ma'am Carol for being my mentor. I am very thankful to all of you, to Direct, to our staff, Tao po na nasa behind, itulay po. Maraming salamat po sa pagkakataon.
It is really an honor for me to be with you this very beautiful Friday. Ma'am Carol, baka may gusto po kayong sabihin? Thank you so much kay Tutor Maj for directing today's episode of Accounting 2. Thank you. Salamat po, Tutor Maj. And congratulations to Tutor Carmi na itulay mo.
Yes. You finished the first episode of Fundamental Subcontents. Yes.
Thank you, tutor. See you again next week, teachers and students. Thank you so much for joining us.