LESSON 7-1 Preparing an Income Statement 11/29/2018 LESSON 7-1 Preparing an Income Statement

TERMS REVIEW stakeholders component percentage page 186 LESSON 7-1 11/29/2018 TERMS REVIEW page 186 stakeholders component percentage Stakeholders: any persons or groups who will be affected by an action (of a business) component percentage: The percentage relationship between one financial statement item and the total that includes that item (expenses and Net Income/loss) LESSON 7-1

INCOME STATEMENT INFORMATION ON A WORK SHEET LESSON 7-1 11/29/2018 INCOME STATEMENT INFORMATION ON A WORK SHEET page 182 LESSON 7-1

HEADING OF AN INCOME STATEMENT LESSON 7-1 11/29/2018 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

REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT LESSON 7-1 11/29/2018 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

COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT LESSON 7-1 11/29/2018 COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT page 184 LESSON 7-1

Work Together and OYO Work Together 7-1: text p 186; working pprs p 145 OYO 7-1: text p 186; working pprs p 146 LESSON 7-1

INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS LESSON 7-1 11/29/2018 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

LESSON 7-1 Balance Sheet Information on a Work Sheet 11/29/2018 LESSON 7-2 Balance Sheet Information on a Work Sheet

LESSON 7-1 11/29/2018 BALANCE SHEET page 187 LESSON 7-1

HEADING OF A BALANCE SHEET LESSON 7-1 11/29/2018 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. LESSON 7-1

ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET LESSON 7-1 11/29/2018 ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET page 188 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 7-1

OWNER’S EQUITY SECTION OF A BALANCE SHEET LESSON 7-1 11/29/2018 OWNER’S EQUITY SECTION OF A BALANCE SHEET page 189 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 7-1

OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET LESSON 7-1 11/29/2018 OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET page 190 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 7-1

Work Together/OYO Chapter Assignment Work Together 7-2: text p 192; working pprs 147 OYO 7-2: text p 192; working pprs 148 Study Guide 7 7-Mastery 7-Challenge: extra credit LESSON 7-1