Embed Size (px)
Citation preview
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-1LESSON 15-1
Preparing an Income Statement
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2
LESSON 15-1
INCOME STATEMENT INFORMATION INCOME STATEMENT INFORMATION ON A WORK SHEETON A WORK SHEET page 448
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
3
LESSON 15-1
6. Contra account amounts
REVENUE SECTION OF AN INCOME STATEMENT REVENUE SECTION OF AN INCOME STATEMENT FOR A MERCHANDISING BUSINESSFOR A MERCHANDISING BUSINESS
11
22
33 44
55
66 7788 99
1. Heading
7. Contra account total
3. Title of revenue account 8. Net Sales
4. Sales amount 9. Net sales amount
5. Less contra accounts
2. Revenue section
page 449
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
4
LESSON 15-1
COST OF MERCHANDISE SOLD SECTION OF AN COST OF MERCHANDISE SOLD SECTION OF AN INCOME STATEMENT FOR A MERCHANDISING INCOME STATEMENT FOR A MERCHANDISING BUSINESSBUSINESS
11
2233
page 450
446655
1. Cost of Merchandise Sold section
2. Beginning inventory
3. Purchases section
4. Total cost of merchandise available for sale
5. Ending inventory
6. Cost of merchandise sold
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
5
LESSON 15-1
COMPLETING AN INCOME STATEMENT COMPLETING AN INCOME STATEMENT FOR A MERCHANDISING BUSINESSFOR A MERCHANDISING BUSINESS
11
22
44
55
page 452
77
3366
7. Component percentage
6. Double lines
5. Net Income after Federal Income Tax
4. Less Federal Income Tax Expense
3. Net Income before Federal Income Tax
2. Expenses section
1. Gross Profit on Sales
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-2LESSON 15-2
Analyzing an Income Statement
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
7
LESSON 15-2
ANALYZING AN INCOME STATEMENT ANALYZING AN INCOME STATEMENT SHOWING A NET LOSSSHOWING A NET LOSS page 457
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
8
LESSON 15-2
Price-EarningsRatio
=Earnings
perShare
÷Market Price
per Share
Earningsper Share
=Number of
SharesOutstanding
÷Net Incomeafter FederalIncome Tax
FINANCIAL RATIOSFINANCIAL RATIOS page 459
Earnings per Share
Price-Earnings Ratio
$32.13=2,500÷$80,313.95
10.7=$32.13÷$345.00
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-3LESSON 15-3
Preparing a Statement of Stockholders’ Equity
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
10
LESSON 15-3
CAPITAL STOCK SECTION OF THE CAPITAL STOCK SECTION OF THE STATEMENT OF STOCKHOLDERS’ EQUITYSTATEMENT OF STOCKHOLDERS’ EQUITY
1122
3344
55
page 461
1. Heading
2. Capital Stock and Par Value
5. Total stock issued at the end of the year
3. Stock at the beginning of the year
4. Stock issued during the year
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
11
LESSON 15-3
RETAINED EARNINGS SECTION OF THE RETAINED EARNINGS SECTION OF THE STATEMENT OF STOCKHOLDERS’ EQUITYSTATEMENT OF STOCKHOLDERS’ EQUITY
112233
44
page 462
4. Dividends declared
66
77
55
2. Beginning balance
7. Total stockholders’ equity6. Ending balance3. Net income after federal
income tax
5. Increase in retained earnings1. Retained Earnings
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-4LESSON 15-4
Preparing a Balance Sheet
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
13
LESSON 15-4
BALANCE SHEET INFORMATION BALANCE SHEET INFORMATION ON A WORK SHEETON A WORK SHEET page 464
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
14
LESSON 15-4
CURRENT ASSETS SECTION CURRENT ASSETS SECTION OF A BALANCE SHEETOF A BALANCE SHEET
11
22
33
44
55
page 465
3. Book value of accounts receivable
4. Remaining current asset accounts1. Heading
2. Begin assets section 5. Current assets
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
15
LESSON 15-4
PLANT ASSETS SECTION PLANT ASSETS SECTION OF A BALANCE SHEETOF A BALANCE SHEET
11
22
33
page 466
44
551. 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.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
16
LESSON 15-4
LIABILITIES SECTION LIABILITIES SECTION OF A BALANCE SHEETOF A BALANCE SHEET
11
33
page 467
1. Heading
2. Account title and amount of each current liability
3. Total liabilities
22
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
17
LESSON 15-4
STOCKHOLDERS’ EQUITY SECTION STOCKHOLDERS’ EQUITY SECTION OF A BALANCE SHEETOF A BALANCE SHEET
11
page 468
5. Total liabilities and stockholders’ equity
44
55
2233
2. Capital stock
1. Stockholders’ Equity
3. Retained earnings
4. Total stockholders’ equity
6. Double rules66
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
18
LESSON 15-4
COMPLETED BALANCE SHEETCOMPLETED BALANCE SHEET page 469
(continued on next slide)
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
19
LESSON 15-4
COMPLETED BALANCE SHEETCOMPLETED BALANCE SHEET page 469(continued from previous
slide)
