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The Balance Sheet and Income Statement are essential documents a business person needs in order to evaluate the

stability and growth of a business. The income statement is a financial statement showing the revenue, expenses and net income or net loss for a period of time. All revenue and expenses are recorded on the income statement and are the only items listed. To prepare the income statement the following needs to be completed. 1. Fill out the headings at the top of the income statement. a. The first line should be the business name b. The second line should inform the reader of what type of statement you are creating ( Income Statement) c. The third line should state the period the information is for. LeBlancs Real Estate Service Income Statement For month ended May 1, 2012

2. Print in a heading called Revenue LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue 3. List all of the different Revenue that was accrued for that business, they are to be printed under the heading indented under the heading. The values for each are entered. If there is only one source of revenue write it down in the right column, no underline is needed and then move to the expenses section. LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales Expenses 3600.00

If there is more than one source of Revenue, you have to list them all then add them and enter total revenue on the line below your last source of Revenue in the Right Column. Underline the entire box where your last amount was entered. LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales Markets Total Revenue 3200.00 2200.00 5400.00

4. Once all of your revenue is entered, enter all of your expense. Start by entering a heading called Expenses directly below the total revenue line or last entry in the revenue section. It should look like one of the two below. LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales Expenses LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales Markets Total Revenue Expenses 3200.00 2200.00 5400.00 3600.00

5. Enter all of your expenses below that heading. Make sure that you indent under the main heading. Place your values in the left column. LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales 3200.00 Markets 2200.00 Total Revenue 5400.00 Expenses Advertising Expense 2200.00 Rent Expense 1000.00

6. Total all of your expenses, create another line that says total expenses and enter the value in the right column. Underline the entire box where your last expense value was entered LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales Markets Total Revenue Expenses Advertising Expense Rent Expense Total Expenses 3200.00 2200.00 5400.00 2200.00 1000.00 3200.00

7. Calculate your net income or loss. Put a single underline under the final value in the right column. Using the values in the right column subtract the expenses from your revenue. Based on your number, create a new line that says either Net Income or loss. The line should not be indented and should be right below total expenses. The final total should be double underlined across both the left and right column. LeBlancs Real Estate Service Income Statement For month ended May 1, 2012 Revenue Real Estate Sales Markets Total Revenue Expenses Advertising Expense Rent Expense Total Expenses Net Income 3200.00 2200.00 5400.00 2200.00 1000.00 3200.00 2200.00

Using the information above, complete the following questions using columnar paper.

Income Statement Examples


A) Business: Metro Bowling Lanes Fiscal Period: For month ended May 31 Bowling Revenue Advertising Expense Maintenance Expense Miscellaneous Expense Rent Expense Utilities Expense Wages Expense $3560.10 $83.20 $134.30 $32.60 $450.00 $134.60 $400.00

B) Business: United Insurance Agency Fiscal Period: For quarter ended December 31 Premiums Revenue Advertising Expense Automobile Expense Entertainment Expense Miscellaneous Expense Rent Expense $1300.00 $93.50 $125.00 $72.00 $115.00 $225.00

C) Business: Dans Tree Service Fiscal Period: For year ended October 31 Fees Sales Miscellaneous Expense Rent Expense Salary Expense $900.00 $300.00 $66.45 $880.00 $375.00