ENTREPRENEUSHIP POWERPOINT

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Source: https://www.template.net/business/repoort..

2. ENTREPRENEURSHIP 10
CLASSROOM OBSERVATION # 2
Ma. Daphne DC. Malait
June 13, 2022

3. REVIEW:
What do you call a chronological records of all transactions of a business.
A. Credit
B. Debit
C. Ledger
D. Journal
Answer: JOURNAL

4. DATE DESCRIPTION PR DEBIT CREDIT
2022
May 1
May 3
Cash
Capital
Initial capital
Sewing Equipment
Cash
Bought sewing
equipment
101
301
102
101
Php500,000,00
35,000.00
Php500,000.00
35,000.00

5. What do you call a “reference book” of the accounting system and is used to classify and
summarize transactions, and to prepare data for basic financial statements?
A. Debit
B. Ledger
C. Journal
D. Posting reference
Answer: LEDGER

6. CASH 101
DATE ITEM PR DEBIT DATE ITEM PR CREDIT
2022
May 1 Initial
capital
J1 Php500,000.00
2022
May 3 Bought
sewing
equipme
nt
J1 Php35,000.00

7. CAPITAL 301
DATE ITEM PR DEBIT DATE ITEM PR CREDIT
2022
May 1 Initial
capital
J1 Php500,000.00

8. Which of the following is a list of all accounts with their respective debit or credit balances. It is prepared
to verify the equality of debits and credits in the ledger at the end of each accounting period or any time
the postings are updated.
A. Balance sheet
B. ledger
C. Journal
D. Trial balance
E. Answer: TRIAL BALANCE

9. Kiko’s kloset
Trial Balance
May 31, 2022
PARTICULARS DEBIT CREDIT
Cash
Accounts Receivables
Equipment
Accounts Payable
Kiko Dela Cruz, capital
Sales
Rent expense
Water utility expense
Salary expense
Php30,000.00
15,000.00
3,000.00
500.00
5,000.00
Php48,500.00
Php 8,500.00
25,000.00
15,000.00
_____________
Php48,500.00

10. New Words to Ponder!

11. Income

12. Income
It is the money that an
individual or business receives
in exchange for providing labor,
producing a good or service or
investing capital.

13. Expense

14. Expense
It is the cost required from
something the money spent
on something.

15. Profit

16. Profit
It is a financial gain, especially the
difference between the amount
earned and the amount spent in
buying, operating, or producing
something.

17. Problem of the day:
How much is the net profit/loss of I-Trend kids Wear?
On May 10, 2022, I-Trend Kids Wear receives Php15,000.00 from the
customers.
They paid delivery expense worth Php500.00.
On May 15, The owner paid the salaries of salesclerks worth Php6,000.00
and power bill worth Php1,000.00
On May 18, 2022 they sold Php10,000.00 worth of products.
On May 30, 2022, they paid rental worth Php 3,000.00

18. What’s New?
Income Statement or
Profit and Loss Statement

19. Objectives
Determine the importance of
preparing an income statement.
Familiarize with the parts of an
income statement.
Prepare an income statement.

20. INCOME
OR
EXPENSE?

21. May 5, 2022 Kiko’s Kloset received 3,000.00 from customers.
INCOME
May 15, 2022 the paid water bill for 500.00.
EXPENSE
May 21, 2022 they sold items worth 2,000.00.
INCOME
MAY 30, 2022 the owner paid 1,500 for the delivery of the
products to the clients.
EXPENSE

22. RENTAL
SALES
SERVICE
REVENUE
POWER BILL
ELECTRIC BILL
DELIVERY CHARGE

23. What is it?

24. INCOME STATEMENT

25. Income Statement
It is a financial
statement that shows
the company’s
income and
expenditures. It also
shows whether a
company is making
profit or loss for a
given period.

26. Importance of preparing an Income Statement
 It shows how much revenue a company earned over a specific
period of time ( usually a year or some portion of a year) it
shows the costs and expenses.
 It helps business owners decide whether they can generate
profit by increasing revenues, by decreasing costs, or both.
 It also shows the effectiveness of the strategies that the
business set at the beginning of the financial period

27. Steps in preparing an income statement:
1. Write the heading.
2. Add the revenues (sales or service income).
3. Add all the expenses.
4. Subtract the expenses from the revenue.
5. Write net profit if revenue is greater than expense.
6. Write net loss if revenue is less than expense.
7. Underline the net income twice.

28. PARTS OF THE INCOME STATEMENT
Revenues P xxx
Less: Expenses xxx
Profit xxx

29. How much is the net profit/loss of I-Trend kids Wear?
On May 10, 2022, I-Trend Kids Wear receives Php15,000.00 from the
customers.
They paid delivery expense worth Php500.00.
On May 15, The owner paid the salaries of salesclerks worth Php6,000.00
and power bill worth Php1,000.00
On May 18, 2022 they sold Php10,000.00 worth of products.
On May 30, 2022, they paid rental worth Php 3,000.00

30. Solution:
1. Revenues
Php15,000.00
10,000.00
25,000.00
2. Expenses
Php 500.00
1,000.00
6,000.00
3,000.00
Php 10,500.00
3. Revenue less expenses = Net Income Php4,500.00
4. Net profit or Net loss

31. LET’S TRY THIS:
Activity 2
A. Mr. David ’s Car Repair Shop collected P 15,000 in fees for his professional
services. At the same time, however, he spent Php3,000 in rent and Php12,000
in salaries. How much profit or loss does he have?
B. Ms. Pauline received P 60,000 from selling the Lifestyles products. The next
day the customer paid P 20,000 in cash in payment for the food supplement.
At the end of the month, she paid rental worth P 5,000 and salaries of workers
worth P 12,000. She also paid power and telephone bills worth P 2,000. How
much profit or loss does she have?

32. Kiko’s kloset
Trial Balance
May 31, 2022
PARTICULARS DEBIT CREDIT
Cash
Accounts Receivables
Equipment
Accounts Payable
Kiko Dela Cruz, capital
Sales
Rent expense
Water utility expense
Salary expense
Php30,000.00
10,000.00
3,000.00
500.00
5,000.00
Php48,500.00
Php 8,500.00
25,000.00
15,000.00
______________
Php48,500.00

33. Kiko’s Kloset
Income Statement
May 31, 2022
Revenues (Sales) Php 15,000.00
Less: Expenses
Rent Expense Php3,000.00
Water utility expense 500.00
Salary expense 5,000.00
Total Expenses 8,500.00
Net Profit Php 6,500.00

34. Let’s Try!

35. Group Activity
Prepare an Income statement
using the given trial balance.
Group 1
Group 2

36. PRESENTATION OF THE OUTPUTS

37. Generalization:
1. What is the importance of knowing how to prepare the
income statement?
2. What financial report will be the basis in preparing an
Income statement?
3. When does an Income Statement usually prepare?
4. What is the formula used to get the net profit or net
loss.
5. In your daily living, how can you use the knowledge that
you learned about income and expense?

38. EVALUATION