Question

Where is the income statement and balance sheet?

Answer 1

Income Statement contains information on revenues, expenses, losses and gains of a company for a particular accounting period. If revenues and income are greater than expenses and losses, the net result is a net income else the company reports a net loss.

The simple format of income statement is attached below:

ABC Co. Income Statement For the year ended xxxx Revenues Operating expenses Salaries & Wages Expense Advertising Expense Utilities Expense Insurance Expense Rent expense Depreciation - office equipment Interest Expense Office Supplies Expense Total Expenses Net Income 0 $

Balance Sheet also known as statement of financial position, shows the assets, liabilities and equity of a business on a particular date. The assets and liabilities are often divided into current and non-current portion. Equity is too broken into Capital or Common Stock account and retained earnings. The balance sheet should balance meaning Total Assets = Total Liabilties + Total Equity.

A sample of the balance sheet is attached below

ABC Co. Balance Sheet At xxxx ASSETS Amount Current Assets Cash Accounts Receivable Office Supplies Prepaid Insurance Total Current Assets PP&E Office Equipment Accumulated Depreciation - Office Equipment TOTAL ASSETS $ $ $ LIABILITIES & STOCKHOLDERS' EQUITY LIABILITIES Interest Payable Accounts Payable Salaries Payable Unearned Consulting Fees Total Current Liabilities Long term notes payable TOTAL LIABILITIES OWNER'S EQUITY Capital Account Retained Earnings TOTAL EQUITY TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ $ $

Workings

Most businesses prepare 4 different statement as a part of their financial reports. These include Income Statement, Statement of Stockholders' Equity, Balance Sheet and Cash Flow Statement.

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