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Accounting IAccounting I
Chapter 16 – Financial
Statements for a
Partnership
TTERMS REVIEWERMS REVIEW
cost of merchandise sold
gross profit on sales
Lesson 16-1, page 396Lesson 16-1, page 396
TTERMS REVIEWERMS REVIEW
Cost of Merchandise SoldCost of Merchandise Sold
The total original price of all
merchandise sold during the fiscal
period.
Lesson 16-1, page 392Lesson 16-1, page 392
TTERMS REVIEWERMS REVIEW
Gross Profit on SalesGross Profit on Sales
The revenue remaining after cost
of merchandise sold has been
deducted.
Lesson 16-1, page 394Lesson 16-1, page 394
INCOME STATEMENT INFORMATION ON A WORKINCOME STATEMENT INFORMATION ON A WORK
SHEETSHEET
Copy to
Income
Statement
Lesson 16-1, page 392Lesson 16-1, page 392
FIRST TWO SECTIONS OF AN INCOME STATEMENTFIRST TWO SECTIONS OF AN INCOME STATEMENT
FOR A MERCHANDISING BUSINESSFOR A MERCHANDISING BUSINESS
Lesson 16-1, page 393Lesson 16-1, page 393
1
3
2
3. Prepare the merchandise sold section.
1. Write the income statement heading on three lines.
2. Prepare the revenue section.
5. Prepare the
expenses section.
COMPLETING AN INCOME STATEMENT FOR ACOMPLETING AN INCOME STATEMENT FOR A
MERCHANDISING BUSINESSMERCHANDISING BUSINESS
Lesson 16-1, page 394Lesson 16-1, page 394
8
4
6
7
5
6. Calculate the net
income.
4. Calculate the gross
profit on sales.
7. Rule double lines.
8. Calculate the
component
percentages.
Work Together &Work Together &
On Your Own –On Your Own –
Page 396Page 396
ANALYZING AN INCOME STATEMENT SHOWING AANALYZING AN INCOME STATEMENT SHOWING A
NET INCOMENET INCOME
Acceptable Omni Import
Industry Component
Standards Percentages
Sales 100% 100.0%
Cost of merchandise sold not more than 50.0% 48.6%
Gross profit on sales not less than 50.0% 51.4%
Total expenses not more than 35.0% 34.9%
Net income not less than 15.0% 16.5%
Lesson 16-2, page 397Lesson 16-2, page 397
ANALYZING AN INCOME STATEMENT SHOWING AANALYZING AN INCOME STATEMENT SHOWING A
NET LOSSNET LOSS
Lesson 16-2, page 399Lesson 16-2, page 399
Work Together &Work Together &
On Your Own –On Your Own –
Page 401Page 401
TTERMS REVIEWERMS REVIEW
distribution of net income statement
owner’s equity statement
Lesson 16-3, page 407Lesson 16-3, page 407
TTERMS REVIEWERMS REVIEW
Distribution of Net Income (Loss)Distribution of Net Income (Loss)
StatementStatement
A partnership financial statement
showing net income or loss
distribution to partners.
Lesson 16-3, page 402Lesson 16-3, page 402
TTERMS REVIEWERMS REVIEW
Owners’ Equity StatementOwners’ Equity Statement
A financial statement that
summarizes the changes in
owners’ equity during a fiscal
period.
Lesson 16-3, page 404Lesson 16-3, page 404
PREPARING A DISTRIBUTION OF NET INCOMEPREPARING A DISTRIBUTION OF NET INCOME
STATEMENTSTATEMENT
Lesson 16-3, page 402Lesson 16-3, page 402
5
1
3
4
2
3. First Partner’s Share
of Net Income
1. Heading
4. Second Partner’s Name
2. First Partner’s Name
5. Second Partner’s Share of
Net Income
6. Net Income
7. Total Net Income
8. Double Lines
6 7
8
DISTRIBUTION OF NET INCOME STATEMENT WITHDISTRIBUTION OF NET INCOME STATEMENT WITH
UNEQUAL DISTRIBUTION OF EARNINGSUNEQUAL DISTRIBUTION OF EARNINGS
Lesson 16-3, page 403Lesson 16-3, page 403
OWNERS’ EQUITY STATEMENTOWNERS’ EQUITY STATEMENT
Lesson 16-3, page 405Lesson 16-3, page 405
1
4
2
3. First Partner’s
Ending Capital
1. Heading
4. Second Partner’s Name
2. First Partner’s Name
5. Second Partner’s
Ending Capital
6. Total Owners’ Equity
7. Double Lines
6
7
3
5
OWNERS’ EQUITY STATEMENT WITH AN ADDITIONALOWNERS’ EQUITY STATEMENT WITH AN ADDITIONAL
INVESTMENT AND A NET LOSSINVESTMENT AND A NET LOSS
Lesson 16-3, page 406Lesson 16-3, page 406
Work Together &Work Together &
On Your Own –On Your Own –
Page 407Page 407
TTERMS REVIEWERMS REVIEW
supporting schedule
Lesson 16-4, page 412Lesson 16-4, page 412
TTERMS REVIEWERMS REVIEW
Supporting ScheduleSupporting Schedule
A report prepared to give details
about an item on a principal
financial statement. (Schedule of
Accounts Payable/Receivable)
Lesson 16-4, page 411Lesson 16-4, page 411
BALANCE SHEET INFORMATION ON A WORK SHEETBALANCE SHEET INFORMATION ON A WORK SHEET
Lesson 16-4, page 408Lesson 16-4, page 408
FIRST TWO SECTIONS OF A BALANCE SHEET FOR AFIRST TWO SECTIONS OF A BALANCE SHEET FOR A
MERCHANDISING BUSINESSMERCHANDISING BUSINESS
1
3
2
3. Prepare the
liabilities
section.
1. Prepare the
heading.
2. Prepare the
assets section.
Lesson 16-4, page 409Lesson 16-4, page 409
5. Total the liabilities
and owners’ equity
sections.
COMPLETING A BALANCE SHEET FOR ACOMPLETING A BALANCE SHEET FOR A
MERCHANDISING BUSINESSMERCHANDISING BUSINESS
4
6. Verify the accuracy
by comparing totals.
4. Prepare the owners’
equity section.
7. Rule double lines.
5
6
7
7
Lesson 16-4, page 410Lesson 16-4, page 410
Work Together &Work Together &
On Your Own –On Your Own –
Page 412Page 412

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Acct20-Chapter16

  • 1. Accounting IAccounting I Chapter 16 – Financial Statements for a Partnership
  • 2. TTERMS REVIEWERMS REVIEW cost of merchandise sold gross profit on sales Lesson 16-1, page 396Lesson 16-1, page 396
  • 3. TTERMS REVIEWERMS REVIEW Cost of Merchandise SoldCost of Merchandise Sold The total original price of all merchandise sold during the fiscal period. Lesson 16-1, page 392Lesson 16-1, page 392
  • 4. TTERMS REVIEWERMS REVIEW Gross Profit on SalesGross Profit on Sales The revenue remaining after cost of merchandise sold has been deducted. Lesson 16-1, page 394Lesson 16-1, page 394
  • 5. INCOME STATEMENT INFORMATION ON A WORKINCOME STATEMENT INFORMATION ON A WORK SHEETSHEET Copy to Income Statement Lesson 16-1, page 392Lesson 16-1, page 392
  • 6. FIRST TWO SECTIONS OF AN INCOME STATEMENTFIRST TWO SECTIONS OF AN INCOME STATEMENT FOR A MERCHANDISING BUSINESSFOR A MERCHANDISING BUSINESS Lesson 16-1, page 393Lesson 16-1, page 393 1 3 2 3. Prepare the merchandise sold section. 1. Write the income statement heading on three lines. 2. Prepare the revenue section.
  • 7. 5. Prepare the expenses section. COMPLETING AN INCOME STATEMENT FOR ACOMPLETING AN INCOME STATEMENT FOR A MERCHANDISING BUSINESSMERCHANDISING BUSINESS Lesson 16-1, page 394Lesson 16-1, page 394 8 4 6 7 5 6. Calculate the net income. 4. Calculate the gross profit on sales. 7. Rule double lines. 8. Calculate the component percentages.
  • 8. Work Together &Work Together & On Your Own –On Your Own – Page 396Page 396
  • 9. ANALYZING AN INCOME STATEMENT SHOWING AANALYZING AN INCOME STATEMENT SHOWING A NET INCOMENET INCOME Acceptable Omni Import Industry Component Standards Percentages Sales 100% 100.0% Cost of merchandise sold not more than 50.0% 48.6% Gross profit on sales not less than 50.0% 51.4% Total expenses not more than 35.0% 34.9% Net income not less than 15.0% 16.5% Lesson 16-2, page 397Lesson 16-2, page 397
  • 10. ANALYZING AN INCOME STATEMENT SHOWING AANALYZING AN INCOME STATEMENT SHOWING A NET LOSSNET LOSS Lesson 16-2, page 399Lesson 16-2, page 399
  • 11. Work Together &Work Together & On Your Own –On Your Own – Page 401Page 401
  • 12. TTERMS REVIEWERMS REVIEW distribution of net income statement owner’s equity statement Lesson 16-3, page 407Lesson 16-3, page 407
  • 13. TTERMS REVIEWERMS REVIEW Distribution of Net Income (Loss)Distribution of Net Income (Loss) StatementStatement A partnership financial statement showing net income or loss distribution to partners. Lesson 16-3, page 402Lesson 16-3, page 402
  • 14. TTERMS REVIEWERMS REVIEW Owners’ Equity StatementOwners’ Equity Statement A financial statement that summarizes the changes in owners’ equity during a fiscal period. Lesson 16-3, page 404Lesson 16-3, page 404
  • 15. PREPARING A DISTRIBUTION OF NET INCOMEPREPARING A DISTRIBUTION OF NET INCOME STATEMENTSTATEMENT Lesson 16-3, page 402Lesson 16-3, page 402 5 1 3 4 2 3. First Partner’s Share of Net Income 1. Heading 4. Second Partner’s Name 2. First Partner’s Name 5. Second Partner’s Share of Net Income 6. Net Income 7. Total Net Income 8. Double Lines 6 7 8
  • 16. DISTRIBUTION OF NET INCOME STATEMENT WITHDISTRIBUTION OF NET INCOME STATEMENT WITH UNEQUAL DISTRIBUTION OF EARNINGSUNEQUAL DISTRIBUTION OF EARNINGS Lesson 16-3, page 403Lesson 16-3, page 403
  • 17. OWNERS’ EQUITY STATEMENTOWNERS’ EQUITY STATEMENT Lesson 16-3, page 405Lesson 16-3, page 405 1 4 2 3. First Partner’s Ending Capital 1. Heading 4. Second Partner’s Name 2. First Partner’s Name 5. Second Partner’s Ending Capital 6. Total Owners’ Equity 7. Double Lines 6 7 3 5
  • 18. OWNERS’ EQUITY STATEMENT WITH AN ADDITIONALOWNERS’ EQUITY STATEMENT WITH AN ADDITIONAL INVESTMENT AND A NET LOSSINVESTMENT AND A NET LOSS Lesson 16-3, page 406Lesson 16-3, page 406
  • 19. Work Together &Work Together & On Your Own –On Your Own – Page 407Page 407
  • 20. TTERMS REVIEWERMS REVIEW supporting schedule Lesson 16-4, page 412Lesson 16-4, page 412
  • 21. TTERMS REVIEWERMS REVIEW Supporting ScheduleSupporting Schedule A report prepared to give details about an item on a principal financial statement. (Schedule of Accounts Payable/Receivable) Lesson 16-4, page 411Lesson 16-4, page 411
  • 22. BALANCE SHEET INFORMATION ON A WORK SHEETBALANCE SHEET INFORMATION ON A WORK SHEET Lesson 16-4, page 408Lesson 16-4, page 408
  • 23. FIRST TWO SECTIONS OF A BALANCE SHEET FOR AFIRST TWO SECTIONS OF A BALANCE SHEET FOR A MERCHANDISING BUSINESSMERCHANDISING BUSINESS 1 3 2 3. Prepare the liabilities section. 1. Prepare the heading. 2. Prepare the assets section. Lesson 16-4, page 409Lesson 16-4, page 409
  • 24. 5. Total the liabilities and owners’ equity sections. COMPLETING A BALANCE SHEET FOR ACOMPLETING A BALANCE SHEET FOR A MERCHANDISING BUSINESSMERCHANDISING BUSINESS 4 6. Verify the accuracy by comparing totals. 4. Prepare the owners’ equity section. 7. Rule double lines. 5 6 7 7 Lesson 16-4, page 410Lesson 16-4, page 410
  • 25. Work Together &Work Together & On Your Own –On Your Own – Page 412Page 412