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

2. 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

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

4. 2650
75 
600
700
125 
1500
1150

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

7. Chapter 8 Section 2
The Balance Sheet

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

9. Asset
Cash in Bank
Accounts Receivable-City News
Accounts Receivable-Green Company
Computer Equipment
Office Equipment
200.00
Delivery Equipment
Total Assets
Liabilities
75.00
Accounts Payable – Beacon Advertising
Accounts Payable – North Shore Auto
Total Liabilities
Owners Equity
Maria Sanchez, Capital
Total Liabilities and Owners Equity

10. 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 =
This is the number that goes on
The Balance Sheet
Net income from either our Income Statement sheet or our worksheet

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

12. Please do the work together on page 185

13. Problems 8-1,2,3