1 Exam - Notes 2 Solid Footing

1 Exam - Notes 2 Solid Footing - The Income Statement...

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7/14/10 The Income Statement
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7/14/10 On a company’s INCOME STATEMENT, all the revenues earned from sales to customers are listed along with the expenses incurred to produce those revenues. ² Contains two Elements (or sub-groups)… Revenues and Expenses. ² Represents a period of time. For example: 1 year or 1 month… ² Revenues – Expenses = Net Income ² Revenues and expenses are TEMPORARY
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7/14/10 Transaction Analysis Model - Revenues + + Expenses - Debit for Decrease Credit for Increase Debit for Increase Credit for Decrease
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7/14/10 In Class Example
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7/14/10 ACCOUNTING CYCLE STEPS 1) Make a journal entry for each transaction and post to T accounts. 2) At end of accounting period look for possible adjusting entries. Make journal entries and post. 3) Prepare a Pre-closing trial balance 4) Prepare an Income Statement 5) Calculate Retained Earnings
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7/14/10 ² A. On 1/1/09 an investor invests $100,000 into the company - Best Deal. ²
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This note was uploaded on 07/13/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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1 Exam - Notes 2 Solid Footing - The Income Statement...

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