Simple Multi Step Income Statement
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Example 1 Bowser Incorporated Income Statement For the year ending December 31, 2009 Service Revenues Expenses: Administrative Expense Insurance Expense Supplies Expense Advertising Expense Rent Expense Salaries Expense Total Expenses Net Income before taxes Income tax expense Net Income 117,700 12,300 3,000 6,000 26, 200 17,000 32, 000 96,500 21,200 6360 14,840 7,000 14,000 28,000 98,000 70,000 2,000 16,000 48,000 85,000 8,000 20,000 2,500 Bowser Incorporated Statement of Retained Earnings For the year ending December 31, 2009 Retained Earnings, January 1, 2009 Net income Dividends Retained Earnings, December 31, 2009 16,310 14,840 2,200 28,950 Bowser Incorporated Classified Balance Sheet At December 31, 2009 Assets Current Assets: Cash Accounts Receivable Office Supplies Prepaid Insurance 54,500 11,000 4,000 6,550 Total Current Assets Non‐current Assets Equipment Less Accumulated Depreciation Total Non‐current Assets Total Assets Liabilities and Shareholder s Equity Current Liabilities: Accounts Payable Salaries Payable Total Current Liabilities 76,050 132,000 ‐20,000 Non‐current Liabilities: Notes Payable 61,000 3,100 64,100 70,000 Total Liabilities 112,000 188,050 Shareholder s Equity: Common Stock Additional Paid in Capital Retained Earnings Total Shareholder s Equity Total Liabilities Shareholder s Equity 134,100 5,000 20,000 28,950 53,950 188,050 Example 2 Aphrodite Corporation Multiple Step Income Statement For the year ending December 31, 2009 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Salaries Expense Advertising Expense Utilities Expense Total Operating Expenses Operating Income Interest Expense Interest Revenue Net Income Before Taxes Income tax Expense Net Income 800,000 225,000 575,000 75, 000 60,000 30, 000 12, 000 10,000 187,000 388,000 95,000 15,000 308,000 107,800 200,200.
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