Day 49

After studying Chapter 7, you will be able to:

1. Define accounting terms related to financial statements for a service business organized as a proprietorship.
2. Identify accounting concepts and practices related to preparation of financial statements for a service business organized as a proprietorship.
3. Prepare an income statement for a service business organized as a proprietorship and analyze an income statement using component percentages.
4. Prepare a balance sheet for a service business organized as a proprietorship.

Chapter 7 Folder

1. Inside of your Part 1 folder, create a new folder titled Chapter 7.  All your tasks completed in Chapter 7 should be stored in this folder.

Notes 7-1

1. Obtain a Notes 7-1 handout from your instructor and record your notes through the presentation.  You can also view the presentation here.

Working Together 7-1

1. Make a copy of this spreadsheet.
2. Place this file in your Chapter 7 folder.
3. Rename the file to Lesson 7-1-(Your Initials)
4. Complete the spreadsheet according to the directions on page 186 or below.
5. This is a partial work sheet of Darlene’s Delivery Service for the month ended July 31 of the current year.  Also given in the attachment is a blank form for completing an income statement.  Your instructor will guide you through the following example.

On Your Own 7-1

1. This is a partial work sheet of Cut’s by Kellley for the month ended February 28 of the current year.  Also given in your Lesson 7-1 spreadsheet is a blank form for completing an income statement.  Work this problem independently.  Complete the spreadsheet according to the directions on page 186.

Self-Assessment 7-1

1. Complete this self-assessment for Lesson 7-1.  You can use your textbook and notes to complete this assessment.  

Application Problem 7-1

1. Using your Lesson 7-1 spreadsheet, click on the Application Problem 7-1 sheet at the bottom left, and complete the problem as directed on page 194 or below.