1. LESSON 7-1 Preparing an Income Statement
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LESSON 7-1
Preparing an Income Statement

2. TERMS REVIEW stakeholders component percentage page 186 LESSON 7-1
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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

3. INCOME STATEMENT INFORMATION ON A WORK SHEET
LESSON 7-1
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INCOME STATEMENT INFORMATION ON A WORK SHEET
page 182
LESSON 7-1

4. HEADING OF AN INCOME STATEMENT
LESSON 7-1
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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

5. REVENUE, EXPENSES, AND NET INCOME SECTIONS OF AN INCOME STATEMENT
LESSON 7-1
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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

6. COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT
LESSON 7-1
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COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT
page 184
LESSON 7-1

7. 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

8. INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS
LESSON 7-1
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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

9. LESSON 7-1 Balance Sheet Information on a Work Sheet
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LESSON 7-2
Balance Sheet Information on a Work Sheet

10. LESSON 7-1
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BALANCE SHEET
page 187
LESSON 7-1

11. HEADING OF A BALANCE SHEET
LESSON 7-1
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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

12. 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

13. OWNER’S EQUITY SECTION OF A BALANCE SHEET
LESSON 7-1
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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

14. OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET
LESSON 7-1
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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

15. 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