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Accounting IAccounting I
Chapter 16 – Financial Statements for a
Partnership
TTERMS REVIEWERMS REVIEWcost of merchandise sold
gross profit on sales
Lesson 16-1, page 396Lesson 16-1, page 396
TTERMS REVIEWERMS REVIEW
Cost of Merchandise SoldCost of Merchandise Sold
The total original price of all merchandise sold during the fiscal period.
Lesson 16-1, page 392Lesson 16-1, page 392
TTERMS REVIEWERMS REVIEW
Gross Profit on SalesGross Profit on Sales
The revenue remaining after cost of merchandise sold has been deducted.
Lesson 16-1, page 394Lesson 16-1, page 394
INCOME STATEMENT INFORMATION ON A WORK INCOME STATEMENT INFORMATION ON A WORK SHEETSHEET
Copy to Income Statement
Lesson 16-1, page 392Lesson 16-1, page 392
FIRST TWO SECTIONS OF AN INCOME STATEMENT FIRST TWO SECTIONS OF AN INCOME STATEMENT FOR A MERCHANDISING BUSINESSFOR A MERCHANDISING BUSINESS
Lesson 16-1, page 393Lesson 16-1, page 393
1
3
2
3. Prepare the merchandise sold section.
1. Write the income statement heading on three lines.
2. Prepare the revenue section.
5. Prepare the expenses section.
COMPLETING AN INCOME STATEMENT FOR A COMPLETING AN INCOME STATEMENT FOR A MERCHANDISING BUSINESSMERCHANDISING BUSINESS
Lesson 16-1, page 394Lesson 16-1, page 394
8
4
67
5
6. Calculate the net income.
4. Calculate the gross profit on sales.
7. Rule double lines.
8. Calculate the component percentages.
Work Together &Work Together &On Your Own – On Your Own –
Page 396Page 396
ANALYZING AN INCOME STATEMENT SHOWING A ANALYZING AN INCOME STATEMENT SHOWING A NET INCOME NET INCOME
Acceptable Omni ImportIndustry Component
Standards Percentages
Sales 100% 100.0%
Cost of merchandise sold not more than 50.0% 48.6%
Gross profit on sales not less than 50.0% 51.4%
Total expenses not more than 35.0% 34.9%
Net income not less than 15.0% 16.5%
Lesson 16-2, page 397Lesson 16-2, page 397
ANALYZING AN INCOME STATEMENT SHOWING A ANALYZING AN INCOME STATEMENT SHOWING A NET LOSSNET LOSS
Lesson 16-2, page 399Lesson 16-2, page 399
Work Together &Work Together &On Your Own – On Your Own –
Page 401Page 401
TTERMS REVIEWERMS REVIEWdistribution of net income statement
owner’s equity statement
Lesson 16-3, page 407Lesson 16-3, page 407
TTERMS REVIEWERMS REVIEW
Distribution of Net Income (Loss) Distribution of Net Income (Loss) StatementStatement
A partnership financial statement showing net income or loss distribution to partners.
Lesson 16-3, page 402Lesson 16-3, page 402
TTERMS REVIEWERMS REVIEW
Owners’ Equity StatementOwners’ Equity Statement
A financial statement that summarizes the changes in owners’ equity during a fiscal period.
Lesson 16-3, page 404Lesson 16-3, page 404
PREPARING A DISTRIBUTION OF NET INCOME PREPARING A DISTRIBUTION OF NET INCOME STATEMENTSTATEMENT
Lesson 16-3, page 402Lesson 16-3, page 402
5
1
34
2
3. First Partner’s Share of Net Income
1. Heading
4. Second Partner’s Name
2. First Partner’s Name
5. Second Partner’s Share of Net Income
6. Net Income
7. Total Net Income
8. Double Lines
6 78
DISTRIBUTION OF NET INCOME STATEMENT WITH DISTRIBUTION OF NET INCOME STATEMENT WITH UNEQUAL DISTRIBUTION OF EARNINGSUNEQUAL DISTRIBUTION OF EARNINGS
Lesson 16-3, page 403Lesson 16-3, page 403
OWNERS’ EQUITY STATEMENTOWNERS’ EQUITY STATEMENT
Lesson 16-3, page 405Lesson 16-3, page 405
1
4
2
3. First Partner’s Ending Capital
1. Heading
4. Second Partner’s Name
2. First Partner’s Name
5. Second Partner’s Ending Capital
6. Total Owners’ Equity
7. Double Lines
67
3
5
OWNERS’ EQUITY STATEMENT WITH AN ADDITIONAL OWNERS’ EQUITY STATEMENT WITH AN ADDITIONAL INVESTMENT AND A NET LOSSINVESTMENT AND A NET LOSS
Lesson 16-3, page 406Lesson 16-3, page 406
Work Together &Work Together &On Your Own – On Your Own –
Page 407Page 407
TTERMS REVIEWERMS REVIEWsupporting schedule
Lesson 16-4, page 412Lesson 16-4, page 412
TTERMS REVIEWERMS REVIEW
Supporting ScheduleSupporting Schedule
A report prepared to give details about an item on a principal financial statement. (Schedule of Accounts Payable/Receivable)
Lesson 16-4, page 411Lesson 16-4, page 411
BALANCE SHEET INFORMATION ON A WORK SHEETBALANCE SHEET INFORMATION ON A WORK SHEET
Lesson 16-4, page 408Lesson 16-4, page 408
FIRST TWO SECTIONS OF A BALANCE SHEET FOR A FIRST TWO SECTIONS OF A BALANCE SHEET FOR A MERCHANDISING BUSINESSMERCHANDISING BUSINESS
1
3
23. Prepare the
liabilities section.
1. Prepare the heading.
2. Prepare the assets section.
Lesson 16-4, page 409Lesson 16-4, page 409
5. Total the liabilities and owners’ equity sections.
COMPLETING A BALANCE SHEET FOR A COMPLETING A BALANCE SHEET FOR A MERCHANDISING BUSINESSMERCHANDISING BUSINESS
4
6. Verify the accuracy by comparing totals.
4. Prepare the owners’ equity section.
7. Rule double lines.
5
6
7
7
Lesson 16-4, page 410Lesson 16-4, page 410
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Page 412Page 412
