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INCOME STATEMENT INFORMATION ON A WORK SHEET

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15 diapositives · 430 Views · Nov 13, 2014

INCOME STATEMENT INFORMATION ON A WORK SHEET. page 448. 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. 8. Net Sales.

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

  2. 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 8. Net Sales 3. Title of revenue account 4. Sales amount 9. Net sales amount 5. Less contra accounts LESSON 15-1

  3. 5 6 4 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 5. Ending inventory 6. Cost of merchandise sold LESSON 15-1

  4. 6 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 5 LESSON 15-1

  5. ANALYZING AN INCOME STATEMENT SHOWING A NET LOSS page 457 LESSON 15-2

  6. Market Priceper Share Net Incomeafter FederalIncome Tax ÷ ÷ Earnings perShare Number of SharesOutstanding = = Price-EarningsRatio Earningsper Share FINANCIAL RATIOS page 459 Earnings per Share $80,313.95 ÷ 2,500 = $32.13 Price-Earnings Ratio $345.00 ÷ $32.13 = 10.7 LESSON 15-2

  7. CAPITAL STOCK SECTION OF THE STATEMENT OF STOCKHOLDERS’ EQUITY page 461 1 2 3 4 5 1. Heading 2. Capital Stock and Par Value 3. Stock at the beginning of the year 4. Stock issued during the year 5. Total stock issued at the end of the year LESSON 15-3

  8. 5 6 7 RETAINED EARNINGS SECTION OF THE STATEMENT OF STOCKHOLDERS’ EQUITY page 462 1 3 2 4 1. Retained Earnings 4. Dividends declared 2. Beginning balance 5. Increase in retained earnings 3. Net income after federal income tax 6. Ending balance 7. Total stockholders’ equity LESSON 15-3

  9. BALANCE SHEET INFORMATION ON A WORK SHEET page 464 LESSON 15-4

  10. CURRENT ASSETS SECTION OF A BALANCE SHEET page 465 1 2 3 4 5 1. Heading 3. Book value of accounts receivable 4. Asset accounts 2. Begin assets section 5. Current assets LESSON 15-4

  11. 4 5 PLANT ASSETS SECTION OF A BALANCE SHEET page 466 1 2 3 1. Write the heading Plant Assets. 2. Calculate the book value of office equipment. 3. Use the same procedure to calculate the book value of store equipment. 4. Calculate total plant assets. 5. Calculate total assets. LESSON 15-4

  12. 2 LIABILITIES SECTION OF A BALANCE SHEET page 467 1. Heading 2. Account title and amount of each current liability 1 3. Total liabilities 3 LESSON 15-4

  13. 3 2 4 5 6 STOCKHOLDERS’ EQUITY SECTION OF A BALANCE SHEET page 468 1 1. Stockholders’ Equity 5. Total liabilities and stockholders’ equity 2. Capital stock 6. Double rules 3. Retained earnings 4. Total stockholders’ equity LESSON 15-4

  14. COMPLETED BALANCE SHEET page 469 (continued on next slide) LESSON 15-4

  15. COMPLETED BALANCE SHEET page 469 (continued from previous slide) LESSON 15-4