CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 7-1LESSON 7-1

Preparing an Income Statement

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LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

INCOME STATEMENT INFORMATION ON INCOME STATEMENT INFORMATION ON A WORK SHEETA WORK SHEET page 182

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LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

HEADING OF AN INCOME STATEMENTHEADING OF AN INCOME STATEMENT

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22

33

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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.

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LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

REVENUE, EXPENSES, AND NET INCOME REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENTSECTIONS OF AN INCOME STATEMENT page 183

11RevenueRevenue33 Revenue amountRevenue amount

44ExpensesExpenses

55Account titlesAccount titles 66 Expense amountExpense amount

88Total expensesTotal expenses 99 Total of expensesTotal of expenses

1212 Net IncomeNet Income

77 Single lineSingle line

1111 Single lineSingle line

1010 Calculate net incomeCalculate net income

1414 Double linesDouble lines

1313 Record net incomeRecord net income

22 Account titleAccount title

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LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

COMPONENT PERCENTAGE ANALYSIS COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENTOF AN INCOME STATEMENT page 184

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LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

INCOME STATEMENT WITH TWO SOURCES OF INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSSREVENUE AND A NET LOSS page 185

11RevenueRevenue

33 Revenue amountsRevenue amounts22Account titlesAccount titles

66Net LossNet Loss

77 Record Net LossRecord Net Loss

55 Total RevenueTotal Revenue

44 Total of revenueTotal of revenue

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LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

TERMS REVIEWTERMS REVIEW

stakeholders component percentage

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