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Lesson 15 1
1.
LESSON 15-1 Preparing an
Income Statement CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
2.
2 INCOME STATEMENT INFORMATION ON
A WORK SHEET CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 448 LESSON 15-1
3.
3 REVENUE SECTION OF
AN INCOME STATEMENT page 449 FOR A MERCHANDISING BUSINESS 1 2 3 4 5 8 1. 2. 3. 4. 5. Heading Revenue section Title of revenue account Sales amount Less contra accounts 6 6. 7. 8. 9. 9 7 Contra account amounts Contra account total Net Sales Net sales amount CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1
4.
4 COST OF MERCHANDISE
SOLD SECTION OF AN INCOME STATEMENT FOR A MERCHANDISING page 450 BUSINESS 1. Cost of Merchandise Sold section 2. Beginning inventory 1 3. Purchases section 2 3 4. Total cost of merchandise available for sale 5. Ending inventory 5 6 4 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6. Cost of merchandise sold LESSON 15-1
5.
5 COMPLETING AN INCOME
STATEMENT FOR A MERCHANDISING BUSINESS 7 1 2 3 4 5 6 CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning page 452 1. Gross Profit on Sales 2. Expenses section 3. Net Income before Federal Income Tax 4. Less Federal Income Tax Expense 5. Net Income after Federal Income Tax 6. Double lines 7. Component percentage LESSON 15-1
6.
6 TERMS REVIEW page 454
net sales cost of merchandise sold gross profit on sales CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1
7.
6 TERMS REVIEW page 454
net sales cost of merchandise sold gross profit on sales CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1
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