Section 1 The income statement Chapter 8 Section 1 The income statement

Step #7 in the accounting cycle Our job now is to take the information and place it on financial sheet so that our stockholders can read the information better. Order you must do Financial Sheets Income Statement Balance Sheet

Heading of the Income Statement Name of the Company Name of the financial sheet Time of when the sheet is created

2650 75  600 700 125  1500 1150

PLEASE WORK ON WORK “ON YOUR OWN” ON PAGE 180

Chapter 8 Section 2 The Balance Sheet

The Balance Sheet What types of accounts go on the balance sheet? Asset Liabilities Owners Equity

Asset Cash in Bank 21125.00 Accounts Receivable-City News 1450.00 Accounts Receivable-Green Company Computer Equipment 3000.00 Office Equipment 200.00 Delivery Equipment 12000.00 Total Assets 37775.00 Liabilities 75.00 Accounts Payable – Beacon Advertising 11650.00 Accounts Payable – North Shore Auto 11725.00 Total Liabilities Owners Equity Maria Sanchez, Capital Total Liabilities and Owners Equity

In order to find the right number to go into the Capital balance there is an equation That we need to remember. How much did we start with = Beginning Capital Balance How much did we make = Net Income How much did we take away (Drawing) = Balance in drawing account 25400 + 1150 - 500 = 26050 This is the number that goes on The Balance Sheet Net income from either our Income Statement sheet or our worksheet

Now that we have the rest of the numbers we can finish the balance sheet Asset Cash in Bank 21125.00 Accounts Receivable-City News 1450.00 Accounts Receivable-Green Company Computer Equipment 3000.00 Office Equipment 200.00 Delivery Equipment 12000.00 Total Assets 37775.00 Liabilities 75.00 Accounts Payable – Beacon Advertising Accounts Payable – North Shore Auto 11650.00 Total Liabilitie3s 11725.00 Owners Equity 26050 Maria Sanchez, Capital Total Liabilities and Owners Equity 37775.00

Please do the work together on page 185

Problems 8-1,2,3