Chapter Seven-Financial Statements Objectives LESSON 7-1 4/25/2017 Chapter Seven-Financial Statements Objectives Define terms Identify accounting concepts Prepare an income statement for a service business organized as a sole proprietorship Prepare a balance sheet for a service business organized as a sole proprietorship LESSON 7-1

Preparing an Income Statement LESSON 7-1 4/25/2017 LESSON 7-1 Preparing an Income Statement Terms: Stakeholder Component percentage

INCOME STATEMENT INFORMATION ON A WORK SHEET LESSON 7-1 4/25/2017 INCOME STATEMENT INFORMATION ON A WORK SHEET page 182 LESSON 7-1

HEADING OF AN INCOME STATEMENT LESSON 7-1 4/25/2017 HEADING OF AN INCOME STATEMENT page 182 1 2 3 1. Center the name of the company on the first line. 2. Center the name of the report on the second line. 3. Center the date of the report on the third line. LESSON 7-1

REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT LESSON 7-1 4/25/2017 REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT page 183 7 Single line 1 Revenue 2 Account title 3 Revenue amount 4 Expenses 5 Account titles 6 Expense amount 8 Total expenses 9 Total of expenses 11 Single line 13 Record net income 12 Net Income 14 Double lines 10 Calculate net income LESSON 7-1

COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT LESSON 7-1 4/25/2017 COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT page 184 LESSON 7-1

INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS LESSON 7-1 4/25/2017 INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS page 185 5 Total Revenue 1 Revenue 2 Account titles 3 Revenue amounts 4 Total of revenue 6 Net Loss 7 Record Net Loss LESSON 7-1

TERMS REVIEW stakeholders component percentage page 186 LESSON 7-1 4/25/2017 TERMS REVIEW page 186 stakeholders component percentage LESSON 7-1