Preparing An Income Statement Statement Of Retained Earnings And Balance Sheet

Listed alphabetically amounts in millions.

Preparing an income statement statement of retained earnings and balance sheet. An income statement a statement of retained earnings a balance sheet and the statement of cash flows. This schedule is most often prepared for outside parties such as lenders or investors since internal staff usually has access to this information. Cash 12 950 accounts receivable 28 150 supplies 4 400 prepaid insurance 9 500 land 100 000 buildings 360 000. Accounts payable 1 731 other assets 2 581 accounts receivable 845 other liabilities 3 107 aircraft fuel expense 2 536 other operating expenses 2 145.

Mini case preparing an income statement statement of retained earnings and balance sheet lo p3 maria gomez owns and manages a consulting firm called accel which began operations on december 1. Once you have prepared the adjusted trial balance you are ready to prepare the financial statements. Can anyone help me with where each item below belongs on each statement please. Lo p3 angela lopez owns and manages a consulting firm called metrix which began operations on march 1.

Like other financial statements a retained earnings statement is structured as an equation. The statement of retained earnings can be prepared as its own standalone schedule but many companies also append it to the bottom of another statement such as the balance sheet. The statement of retained earnings can be prepared as a stand alone document or be attached to another financial statement such as the balance sheet or income statement profit or loss account. Remember that we have four financial statements to prepare.

Net income is then added or net loss is subtracted from the. Preparing an income statement statement of retained earnings and balance sheet the following information was reported in the december 31 2007 financial statements of southwest airlines inc. That information including the opening balance of retained earnings net income during the period the dividend paid or declaration during the year. I have to say that i m a little overwhelmed and have to prepare an income statement balance sheet and statement of retained earnings from the information below but am confused at what goes where.

A statement of retained earnings can be a standalone document or appended to the balance sheet at the end of each accounting period. The statement can. On march 31 metrix. Preparing financial statements is the seventh step in the accounting cycle.