tailieunhanh - Lecture Accounting fundamentas (7e): Chapter 22 - Curran

Chapter 22 - Cost of goods sold and statements. After completing this chapter, students will be able to: Complete a ten-column worksheet; prepare the income statement, statement of owner’s equity, and balance sheet from the worksheet. | CHAPTER TWENTY TWO COST OF GOODS SOLD AND STATEMENTS 1. Complete a ten-column worksheet. 2. Prepare the income statement, statement of owner’s equity, and balance sheet from the worksheet. COST OF GOODS SOLD AND STATEMENTS Objectives: 22- Completing the Ten-Column Worksheet The following procedures are used to prepare the last two sections of the worksheet -- the Income Statement section and the Balance Sheet section. 22- Completing the Ten-Column Worksheet (continued) The balances of the asset, liability, and owner’s equity accounts shown in the Adjusted Trial Balance section are recorded in the proper columns of the Balance Sheet section. 22- Completing the Ten-Column Worksheet (continued) Both the debit and credit amounts shown on the Income Summary line are extended to the Debit and Credit columns in the Income Statement section. 22- Completing the Ten-Column Worksheet (continued) The balances of the revenue, cost, and expense accounts shown in the Adjusted . | CHAPTER TWENTY TWO COST OF GOODS SOLD AND STATEMENTS 1. Complete a ten-column worksheet. 2. Prepare the income statement, statement of owner’s equity, and balance sheet from the worksheet. COST OF GOODS SOLD AND STATEMENTS Objectives: 22- Completing the Ten-Column Worksheet The following procedures are used to prepare the last two sections of the worksheet -- the Income Statement section and the Balance Sheet section. 22- Completing the Ten-Column Worksheet (continued) The balances of the asset, liability, and owner’s equity accounts shown in the Adjusted Trial Balance section are recorded in the proper columns of the Balance Sheet section. 22- Completing the Ten-Column Worksheet (continued) Both the debit and credit amounts shown on the Income Summary line are extended to the Debit and Credit columns in the Income Statement section. 22- Completing the Ten-Column Worksheet (continued) The balances of the revenue, cost, and expense accounts shown in the Adjusted Trial Balance section are recorded in the proper columns of the Income Statement section. 22- Completing the Ten-Column Worksheet (continued) The columns of the Income Statement section and the Balance Sheet section are totaled. 22- Completing the Ten-Column Worksheet (continued) The total of the Debit column in the Income Statement section is subtracted from the total of the Credit column. The difference is the net income for the period. 22- Completing the Ten-Column Worksheet (continued) The total of the Credit column in the Balance Sheet section is subtracted from the total of the Debit column. The difference is the same as the net income. This amount is entered below the total of the Credit column. 22- Completing the Ten-Column Worksheet (continued) The columns of the Income Statement section and the Balance Sheet section are totaled again. In each section, the debits and credits should be equal. 22- Preparing the Financial Statements The income statement for .