Find Job or Recruit Staff: 093 682 682 | 078 868 848 | info@pp-hr.com | Recruitment Service

Income Statement Format- Merchandising, Manufacturing and Service Company





In practice for financial accounting, we ever knew cost of goods sold ( for merchandising company) or cost of products sold ( for manufacturing company) that are shown in income statement, but we rare saw cost of service ( for service company) in income statement.

Below are forms of income statement for each company:

Example 1-Income Statement for Merchandising Company

ABC Company

Income Statement

31 December 2018

Sale…………………………………………..20,000

Cost of goods sold……………………..…(7,000)

Gross Profit………………………………..13,000

Less Expenses                                    

Admin…………………………………….…..5,000

Marketing and Selling Expense…….3,000

Profit before Finance Cost/Interest..5,000

Finance Cost/Interest………………....(1,000)

Profit before income Tax………….…..4,000

Income Tax…………………………..…..(1,000)

Net profit……………………………3,000




Example 2-Income Statement for Manufacturing Company

XYZ Company

Income Statement

31 December 2018

Sale…………………………….……………60,000

Cost of Products Sold…………….……(21,000)

Gross Profit………………………………..39,000

Less Expenses                                    

Admin………………………………………..15,000

Marketing and Selling Expense………9,000

Profit before Finance Cost/Interest.15,000

Finance Cost/Interest……………..…...(3,000)

Profit before income Tax…………..….12,000

Income Tax………………………………...(3,000)

Net profit………………………..……9,000



Example 3-Income Statement for Service Company

Below it is format that is rare shown in income statement for service company.

Phnom Penh HR Company

Income Statement

31 December 2018

Service Income…………………………..40,000

Cost of Service………………………..…(14,000)

Gross Profit………………………………26,000

Less Expense                                      

Admin……………………………………….10,000

Marketing and Selling Expense……….6,000

Profit before Finance Cost/Interest..10,000

Finance Cost/Interest………………..….(2,000)

Profit before income Tax………………..8,000

Income Tax…………………………..….…(2,000)

Net profit…………………………….6,000




 In practice, below it is format that is shown in income statement for Service Company.

Phnom Penh HR Company

Income Statement

31 December 2018

Service Income…………………………… 40,000

Less Expense                                      

Admin……………………………………….24,000*

Marketing and Selling Expense……….6,000

Profit before Finance Cost/Interest..10,000

Finance Cost/Interest………………..….(2,000)

Profit before income Tax………………..8,000

Income Tax……………………………..…(2,000)

Net profit……………………………..6,000




 *Cost of service is combined with admin cost, so admin cost = 10,000 + 14,000=$24,000

Find Jobs Here !

Phnom Penh HR

Post Job Announcement Free:
Step 1 Go to : www.pp-hr.com
Step 2 Click Menu: Register
Step 3 Click Menu : Post Job Free
Phnom Penh HR Services:
1.Recruitment Service
2.Cambodia Tax Consulting
3.Accounting Service Preparation
4.Outsourcing service
5.Internal Auditing Service
Services by ACCA | CPA,Tax Agent
Diploma in Cambodia Tax,and MBA
**Contact Us Via 093 682 682
078 868 848| info@pp-hr.com

If article is helpful, Donate free writers:

SHARE