Income Statement 1. Introduction 2. Comparison: Balance Sheet and Income Statement 3. Income Titles 4. Expense Titles 2.

Comparison: Balance Sheet and Income Statement Balance Sheet: - Contains Assets, Liability, and Owners Equity - Shows the statement of financial condition/status Income Statement: - Contains Income, Expense, and Summary of Profit or Loss - Shows how well was the company doing (Is it gaining profit/incurring loss?) 3. Income Titles - Income - represents inflow of cash or other assets for service rendered or merchandise sold - increase in economic benefits - Income Titles - Sales or Merchandise Sales - total sales price of the merchandise sold. - Revenue from Fees (Professional Income) - income use by professionals like doctors, lawyers, accountants, engineers, dentists and the likes in the exercise of their professions - Rent Income - amount of rental earned on the properties of business - Interest Income - amount earned for lending of money

4. Expense Titles - Expense - represents outflow of cash in the business - decrease in economic benefits - Expense Titles - Salaries Expense - wages given to workers or salesmen - Office Expense - wages of employees in connection with administrative phase of business - Advertising Expense - promotional expense in connection with propagandizing of the products - Transportation and Communication Expense - expenses related to travel and communication - Supplies Expense - Taxes Expense - Utilities Expense - cost of light and water consumption - Rent Expense - amount paid for use of properties or premises - Interest Expense - amount paid for money obligations 5. Income and Expense Summary: Net Profit and Net Loss - I will post later an example of (2) income statements. . Ang role mo dito ay analysis kung paano gumawa ng income statement; saan nakalagay yung income, expense. - Isang profit at isang loss ang ipopost ko. Interpret lang. Kapag mataas ang income kaysa expense, Net Profit. Ganun din naman kapag otherwise. - Overall, interpretation type ang reporting sa section dito