CHAPTER 15 FINANCIAL STATEMENTS FOR A CORPORATION DEFINE TERMS & IDENTIFY ACCOUNTING CONCEPTS PREPARE AN INCOME STATEMENT ANALYZE AN INCOME STATEMENT USING COMPONENT PERCENTAGES AND FINANCIAL RATIOS PREPARE A STATEMENT OF STOCKHOLDERS’ EQUITY PREPARE A BALANCE SHEET LESSON 15-1

LESSON 15-1 Preparing an Income Statement 4/26/2017 LESSON 15-1 Preparing an Income Statement

INCOME STATEMENT INFORMATION ON A WORK SHEET page 448 LESSON 15-1

REVENUE SECTION OF AN INCOME STATEMENT FOR A MERCHANDISING BUSINESS page 449 1 2 3 4 5 8 9 6 7 1. Heading 6. Contra account amounts 2. Revenue section 7. Contra account total 3. Title of revenue account 8. Net Sales 4. Sales amount 9. Net sales amount 5. Less contra accounts LESSON 15-1

COST OF MERCHANDISE SOLD SECTION OF AN INCOME STATEMENT FOR A MERCHANDISING BUSINESS page 450 1. Cost of Merchandise Sold section 2. Beginning inventory 1 3. Purchases section 2 4. Total cost of merchandise available for sale 3 4 5. Ending inventory 5 6 6. Cost of merchandise sold LESSON 15-1

COMPLETING AN INCOME STATEMENT FOR A MERCHANDISING BUSINESS page 452 1. Gross Profit on Sales 2. Expenses section 7 1 3. Net Income before Federal Income Tax 4. Less Federal Income Tax Expense 2 5. Net Income after Federal Income Tax 6. Double lines 3 7. Component percentage 4 6 5 LESSON 15-1

TERMS REVIEW net sales cost of merchandise sold gross profit on sales page 454 net sales cost of merchandise sold gross profit on sales LESSON 15-1