Accounting Demystified phần 2 ppt

Financial Statements 7

subheading. Figure 2-1 is an example of a typical Income

Statement.

Even though such rules seem silly, and for the most part

are not very important as long as it is obvious to the reader

how to interpret the information, they do serve a purpose. The

double underline tells the reader what the final total of the

statement is. The single underline alerts the reader that a sub￾total is coming on the next line. Indenting is an efficient way

of depicting a grouping of like items.

Statement of Retained Earnings

The Statement of Retained Earnings takes the beginning bal￾ance of Retained earnings (which is the same as the ending

FIGURE 2-1

Jeffry Haber Company

Income Statement

For the Year Ended December 31, 2002

Revenues:

Sales $250,000

Interest income 500

Total revenue $250,500

Expenses:

Payroll $125,000

Payroll taxes 20,000

Rent 10,000

Telephone 7,000

Office supplies 3,000

Total expenses $165,000

Net income $ 85,500

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