CENTURY 21 ACCOUNTING Thomson/South-Western 1 LESSON 7-1 Chapter
Seven-Financial Statements Objectives Define terms Identify
accounting concepts Prepare an income statement for a service
business organized as a sole proprietorship Prepare a balance sheet
for a service business organized as a sole proprietorship Slide 2
CENTURY 21 ACCOUNTING Thomson/South-Western LESSON 7-1 Preparing an
Income Statement Terms: Stakeholder Component percentage Slide 3
CENTURY 21 ACCOUNTING Thomson/South-Western 3 LESSON 7-1 INCOME
STATEMENT INFORMATION ON A WORK SHEET page 182 Slide 4 CENTURY 21
ACCOUNTING Thomson/South-Western 4 LESSON 7-1 HEADING OF AN INCOME
STATEMENT 1 2 3 page 182 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. Slide 5 CENTURY
21 ACCOUNTING Thomson/South-Western 5 LESSON 7-1 REVENUE, EXPENSES,
AND NET INCOME SECTIONS OF AN INCOME STATEMENT page 183 1 Revenue 3
Revenue amount 4 Expenses 5 Account titles 6 Expense amount 8 Total
expenses 9 Total of expenses 12 Net Income 7 Single line 11 10
Calculate net income 14 Double lines 13 Record net income 2 Account
title Slide 6 CENTURY 21 ACCOUNTING Thomson/South-Western 6 LESSON
7-1 COMPONENT PERCENTAGE ANALYSIS OF AN INCOME STATEMENT page 184
Slide 7 CENTURY 21 ACCOUNTING Thomson/South-Western 7 LESSON 7-1
INCOME STATEMENT WITH TWO SOURCES OF REVENUE AND A NET LOSS page
185 1 Revenue 3 Revenue amounts 2 Account titles 6 Net Loss 7
Record Net Loss 5 Total Revenue 4 Total of revenue Slide 8 CENTURY
21 ACCOUNTING Thomson/South-Western 8 LESSON 7-1 TERMS REVIEW
stakeholders component percentage page 186
