1. Section 1 The income statement
Chapter 7
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. Capital – Drawing+Net INcome = New Capital Account
The Capital account can not be taken straight from the Worksheet. It has to be calculated……
Capital – Drawing+Net INcome = New Capital Account
Roadrunner Deliver Service 
 Balance Sheet
For Month Ending October 31, 20xx 
Assets
Liabilities
Cash
21125
A/P - Beacon
150
A/R - City News
1450
 A/P – North Sho
 11575
A/R - Green Co
Total Liabilities
11725
Computer Equipment
3000
Owner's Equity
Office Equipment
200
Ken Cherniak, Capital
26050
Delivery Equipment
12000
Total Assets
37775
Total Liab and O.E.
So we must take =24900

10. Please do the work together on page 185

11. Problems 8-1,2,3