Chapter 8 – Financial Statements for a Proprietorship Accounting I Chapter 8 – Financial Statements for a Proprietorship

TERMS REVIEW component percentage Lesson 8-1, page 186

TERMS REVIEW Matching Expenses with Revenue (concept) The revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period. Lesson 8-1, page 182

TERMS REVIEW Component Percentage The percentage relationship between one financial statement item and the total that includes that item. Lesson 7-3, page 166

INCOME STATEMENT INFORMATION ON A WORK SHEET Lesson 8-1 INCOME STATEMENT INFORMATION ON A WORK SHEET Lesson 8-1, page 182

HEADING OF AN INCOME STATEMENT 1 2 3 1. Name of Company 2. Name of Report 3. Date of Report Lesson 8-1, page 182

REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT 1 2 3 4 6 5 7 9 8 11 10 12 14 13 1. Write the name of the first section. 8. Write Total Expenses. 2. Write the title of the revenue account. 9. Record total expenses. 3. Record the balance of the account. 10. Calculate net income. 4. Write the name of the second section. 11. Rule a single line. 5. Write the title of each expense account. 12. Write Net Income. 6. Record the balance of each account. 13. Record net income. Lesson 8-1, page 183 7. Rule a single line. 14. Rule double lines.

COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT Lesson 8-1, page 184

INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS 2. Account Titles 1 3. Revenue Amounts 4. Total of Sales 3 2 5. Total Sales 5 4 6. Net Loss 7. Record Net Loss 6 7 Lesson 8-1, page 185

Work Together & On Your Own – Page 186

BALANCE SHEET INFORMATION ON A WORK SHEET Lesson 8-1 BALANCE SHEET INFORMATION ON A WORK SHEET Lesson 8-2, page 187

HEADING OF A BALANCE SHEET 1 2 3 1. Name of Company 2. Name of Report 3. Date of Report Lesson 8-2, page 187

OWNER’S EQUITY SECTION OF A BALANCE SHEET 1 2 3 4 5 6 7 8 9 10 1. Owner’s Equity 6. Total of Assets 2. Account Title 7. Total Liabilities and Owner’s Equity 3. Capital Amount 8. Total of Liabilities and Owner’s Equity 4. Single Line 9. Compare Totals 5. Total Assets 10. Double Lines Lesson 8-2, page 189

OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET 1 2 3 4 6 7 5 8 9 1. Beginning Capital 6. Difference 2. Beginning Capital Amount 7. Ending Capital 3. Net Income 8. Current Capital Amount 4. Drawing 9. Total Liabilities and Owner’s Equity 5. Single Line Lesson 8-2, page 190

Work Together & On Your Own – Page 191