Prepare An Income Statement For The Year Ended December 31 Current Year

She had two employees a bookkeeper and a clerical assistant.

Prepare an income statement for the year ended december 31 current year. We will be using the adjusted trial balance from this lesson. For example an annual income statement issued by paul s guitar shop inc. 11 the amount of sales is often used by the business as the starting point for planning the next year. Paul s guitar shop inc.

Prepare a statement of owner s equity for the year ended december 31 2019. When you re ready let s begin. Combine all the operating expenses into one line on the income statement for selling general and administrative expenses. Prepare an income statement for the year ended december 31 2019.

To prepare an income statement generate a trial balance report calculate your revenue determine the cost of goods sold calculate the gross margin include operating expenses calculate your income include income taxes calculate net income and lastly finalize your income statement with business details and the reporting period. In addition to her monthly salary of 8 000 ms. Prepare a multi step income statement for the year ended december 31. Year ended may 31 five months ended may 31 quarter ended may 31 month ended may 31 or five weeks ended may 31 a sample income statement in the single step format would look like this.

Dividends 19 000 retained earnings december 31 2017 139 394 req following are two income statements for alexis co. For example an income statement may cover any one of the following time periods. For the year ended december 31 2015. Prepare a balance sheet as of december 31 2019.

Income statement preparation on december 31 2015 cathy chen a self employed certified public accountant cpa completed her first full year in business. The left number column is prepared before any adjusting entries are. During the year she billed 360 000 for her accounting services. Wilson trucking company statement of retained earnings for year ended december 31 2017 retained earnings december 31 2016 138 225 add.

All income statements have a heading that display s the company name title of the statement and the time period of the report. No doubt there are a lot of people involved in the planning for a business the size of mcdonald s. For the year ended december 31 2010. 137 460 sales returns 2 060 sales discounts.

Do not use negative signs with your answers. Would have the following heading. For the year ended december 31. Chen paid annual salaries of 48 000 and 36 000 to the.

For the year ended december 31 2016 mcdonald s had sales of 24 6 billion. In this tutorial we will prepare an income statement of a sole proprietorship service type business using information from previous lessons.