1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 7-1LESSON 7-1
Preparing an
Income Statement

2. 2
LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
INCOME STATEMENT INFORMATION ONINCOME STATEMENT INFORMATION ON
A WORK SHEETA WORK SHEET page 182

3. 3
LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
HEADING OF AN INCOME STATEMENTHEADING OF AN INCOME STATEMENT
11
22
33
page 182
1. Center the name of the company on the first line.
2. Center the name of the report on the second line.
3. Center the date of the report on the third line.

4. 4
LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
REVENUE, EXPENSES, AND NET INCOMEREVENUE, EXPENSES, AND NET INCOME
SECTIONS OF AN INCOME STATEMENTSECTIONS OF AN INCOME STATEMENT page 183
11RevenueRevenue
33 Revenue amountRevenue amount
44ExpensesExpenses
55Account titlesAccount titles 66 Expense amountExpense amount
88Total expensesTotal expenses 99 Total of expensesTotal of expenses
1212 Net IncomeNet Income
77 Single lineSingle line
1111 Single lineSingle line
1010 Calculate net incomeCalculate net income
1414 Double linesDouble lines
1313 Record net incomeRecord net income
22 Account titleAccount title

5. 5
LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
COMPONENT PERCENTAGE ANALYSISCOMPONENT PERCENTAGE ANALYSIS
OF AN INCOME STATEMENTOF AN INCOME STATEMENT page 184

6. 6
LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
INCOME STATEMENT WITH TWO SOURCES OFINCOME STATEMENT WITH TWO SOURCES OF
REVENUE AND A NET LOSSREVENUE AND A NET LOSS page 185
11RevenueRevenue
33 Revenue amountsRevenue amounts22Account titlesAccount titles
66Net LossNet Loss
77 Record Net LossRecord Net Loss
55 Total RevenueTotal Revenue
44 Total of revenueTotal of revenue

7. 7
LESSON 7-1CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
TERMS REVIEWTERMS REVIEW
 stakeholders
 component percentage
page 186