CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 7-1

Preparing an Income Statement

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2

LESSON 7-1

INCOME STATEMENT INFORMATION ON A WORK SHEET page 182

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

3

LESSON 7-1

HEADING OF AN INCOME STATEMENT

1

2

3

page 182

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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

4

LESSON 7-1

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

1Revenue3 Revenue amount

4Expenses

5Account titles 6 Expense amount

8Total expenses 9 Total of expenses

12 Net Income

7 Single line

11 Single line

10 Calculate net income

14 Double lines

13 Record net income

2 Account title

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

5

LESSON 7-1

COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT page 184

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

6

LESSON 7-1

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

1Revenue

3 Revenue amounts2Account titles

6Net Loss

7 Record Net Loss

5 Total Revenue

4 Total of revenue

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

7

LESSON 7-1

TERMS REVIEW

stakeholders component percentage

page 186

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 7-2

Balance Sheet Information on a Work Sheet

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

9

LESSON 7-2

BALANCE SHEET page 187

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

10

LESSON 7-2

HEADING OF A BALANCE SHEET page 187

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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

11

LESSON 7-2

ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET page 188

4 Liabilities1 Assets

Total Liabilities8

2 Account titles

3 Asset amounts

Single line 7

6Liability amounts

5Account titles

Total of liabilities 9

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

12

LESSON 7-2

OWNER’S EQUITY SECTION OF A BALANCE SHEET page 189

7 Total Liab. and Owner’s Eq.

5 Total Assets

1 Owner’s Equity

2 Account title 3Capital amount

4 Single line

6Total of assets

8Total of Liabilities and Owner’s Equity

9Compare totals 10 Double lines

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

13

LESSON 7-2

OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET page 190

2Beginning capital amount

6Difference

8Current capital amount

1 Beginning capital

3 Net Income

4 Drawing

Ending capital7

9 Total Liabilities and Owner’s Equity

5 Single line