Chapter_One_(3)

Chapter_One_(3) - 1 2009/9/7 1 Chapter 1 Accounting in...

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Unformatted text preview: 1 2009/9/7 1 Chapter 1 Accounting in Action (Lesson 3) Chapter 1 Chapter 1 Accounting in Action Accounting in Action (Lesson 3) (Lesson 3) 2009/9/7 2 Financial Statements Companies prepare four financial statements from the summarized accounting data: Companies prepare four financial statements from the summarized accounting data: Balance Sheet Income Statement Statement of Cash Flows (not introduced in ACY1111) Retained Earnings Statement 2009/9/7 3 Financial Statements Income Statement Reports the revenues and expenses for a specific period of time. Net income – revenues exceed expenses. Net loss – expenses exceed revenues. Revenues: Service revenue 5,850 $ Expenses: Salary expense 2,000 Rent expense 400 Advertising expense 250 Total expenses 2,650 Net income 3,200 $ Barone’s Repair Shop Income Statement For the Month Ended May 31, 2007 2009/9/7 4 Financial Statements Revenues: Service revenue 5,850 $ Expenses: Salary expense 2,000 Rent expense 400 Advertising expense 250 Total expenses 2,650 Net income 3,200 $ Barone’s Repair Shop Income Statement For the Month Ended May 31, 2007 Income Statement Retained Earnings...
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Chapter_One_(3) - 1 2009/9/7 1 Chapter 1 Accounting in...

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