Instructions for a Simple Income Statement for Sole Proprietorships/Partnerships

Morrison Pet Supply Company Income Statement For the Month Ended, December 31, 20XX Revenue: Fees Earned Operating Expenses: Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense Total Operating Expenses Net Income $X,XXX $X,XXX X,XXX X,XXX X,XXX X,XXX X,XXX X,XXX

Systematic Instructions Start with the three-line header, which includes the name of the company, the title of the statement, and the fiscal period covered by the statement (i.e. month, year, or fiscal year). 1. On the first line of the body of the statement place the title Revenues: in the left hand column. This is a header so no dollar amount is used. 2. List all revenues and place the dollar amounts in the right hand column(s), if more than one source of revenue add total revenues to the line after the last revenue. 3. On the next line place the title Operating Expenses: in the left hand column. This is another header so no dollar amount is used. 4. Next, list each expense. Place the title for each expense account in the left hand columns. Place the dollar amount for each expense in the middle column. 5. Next, total all of the expenses. Place the title Total Operating Expenses in the left hand column. Place the dollar amount in the right hand column. 6. On the last line, subtract the total operating expenses from the total revenue(s). Place the title Net Income in the left hand column. Place the dollar amount in the right hand column. Double underline the answer. If a net loss occurs (Expenses exceed revenues) then place the title Net Loss in the left hand column.
Note: Always underline your final total and single underline any addition or subtract. Place dollar signs at the top and bottom of any column.

MJC Revised 5/2012

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