1. LESSON 7-1 Preparing an Income Statement
2/23/2019
LESSON 8-1
Preparing an Income Statement

2. INCOME STATEMENT INFORMATION ON A WORK SHEET
page
LESSON 8-1

3. HEADING OF AN INCOME STATEMENT
page 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 8-1

4. REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT
page 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 8-1

5. COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT
page
LESSON 8-1

6. INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS
page 5
Total Revenue 1
Revenue 2
Account titles 3
Revenue amounts 4
Total of revenue 6
Net Loss 7
Record Net Loss
LESSON 8-1

7. TERMS REVIEW
page
component percentage
LESSON 8-1

8. LESSON 7-1 Balance Sheet Information on a Work Sheet
2/23/2019
LESSON 8-2
Balance Sheet Information on a Work Sheet

9. BALANCE SHEET
page
LESSON 8-2

10. HEADING OF A BALANCE SHEET
page 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 8-2

11. ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET
page 6
Liability amounts 5
Account titles 1
Assets 4
Liabilities 2
Account titles 3
Asset amounts
Single line 7
Total of liabilities 9
Total Liabilities 8
LESSON 8-2

12. OWNER’S EQUITY SECTION OF A BALANCE SHEET
page 1
Owner’s Equity 4
Single line 2
Account title 3
Capital amount 6
Total of assets 8
Total of Liabilities and Owner’s Equity 5
Total Assets 9
Compare totals 7
Total Liab. and Owner’s Eq. 10
Double lines
LESSON 8-2

13. OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET
page 3
Net Income 8
Current capital amount 1
Beginning capital 6
Difference 2
Beginning capital amount 4
Drawing 5
Single line
Ending capital 7 9
Total Liabilities and Owner’s Equity
LESSON 8-2