This document discusses how to prepare income statements from a trial balance worksheet. It begins by explaining that an income statement, along with a retained earnings statement and balance sheet, are business financial statements prepared at the end of an accounting period. It then describes the two main types of income statements: a general/single-step income statement and a multiple income statement. The general income statement deducts all expenses directly from revenues, while the multiple income statement deducts cost of goods sold from revenues to calculate gross profit first before deducting operating expenses to reach net operating income. The document provides an example income statement prepared from the trial balance of a lawyer's business.

1. ACCT 11
Module Title: STATEMENT OF PERFORMANCE
Developer: Mrs. Sarah Joy D. Martin
Materials: Eugene A. Ruano, CPA

2. SPECIFIC LEARNING
1 Discussed how to prepare statement of
performance
2 Differentiate the two types of income
statement

3. 1 Statement of Performance
2 Types of income statement
3 Illustration

4. How to prepare income
statements from a worksheet
Prepared with data of debit and credit columns of the income
statements of the worksheet
Business concern mean income statement, retained earnings
statement/owners’ equity statement and balance sheet
prepared at the end of the accounting period.
Statement which is prepared for ascertaining profit (loss) of
business at the end of an accounting period

5. 2 TYPES OF INCOME STATEMENT
1. General or single-step income statement
all expenses are deducted straight from income to
ascertain net profit (loss).
expenses are not shown in the classified forum.

6. 2 TYPES OF INCOME STATEMENT
2. Multiple income statement
the cost of goods sold is deducted from sales revenue to
ascertain gross profit.
From gross profit all operating expenses such as selling
expenses, administrative expenses, etc. are deducted to find
out net operating income.

7. NET PROFIT - other non-operating incomes like rent revenue,
interest revenue, etc. are added to net operating income from which
other non-operating expenses such as interest expense, loss on the sale
of assets, etc. are deducted to ascertain net profit.
income statement will not contain cost of goods sold.
income statement will be a basic breakdown of
income and expenses.
OPERATING INCOME = INCOME - OPEX

8. E. Mortiz, lawyer
Trial Balance
March 31, 2019
REF ACCOUNT TITLE DEBIT CREDIT
111 Cash 940
112 Accounts Receivable-United Bank 0
113 Library 5000
114 Office Equipment 4350
115 Office Supplies 250
211 Notes Payable 2000
212 Accounts Payable-Office Supply Trading 0
311 E. Mortiz, Capital 8000
313 E. Mortiz, Personal 800
411 Professional fees Income 3400
511 Insurance Expense 550
512 Salaries 1200
513 Interest Expense 60
514 Utilities 250
TOTAL 13,400 13,400

9. E. Mortiz, lawyer
STATEMENT OF PERFORMANCE
March 31, 2019
REF ACCOUNT TITLE
Less:
Professional fees Income
Insurance Expense
Salaries
Interest Expense
Utilities
Office supplies used
Depreciation –Office Equipment
NET PROFIT
Php 3400
Php 500
1200
66
250
50
435 (2551)
Php 849

11. END OF PRESENTATION