1. 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

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

3. INCOME STATEMENT INFORMATION ON A WORK SHEET
LESSON 7-1
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INCOME STATEMENT INFORMATION ON A WORK SHEET
page 182
LESSON 7-1

4. HEADING OF AN INCOME STATEMENT
LESSON 7-1
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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

5. 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

6. COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT
LESSON 7-1
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COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT
page 184
LESSON 7-1

7. INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS
LESSON 7-1
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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

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