After studying Chapter 7, you will be able to:
- Define accounting terms related to financial statements for a service business organized as a proprietorship.
- Identify accounting concepts and practices related to preparation of financial statements for a service business organized as a proprietorship.
- Prepare an income statement for a service business organized as a proprietorship and analyze an income statement using component percentages.
- Prepare a balance sheet for a service business organized as a proprietorship.
Chapter 7 Folder
- 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
- 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
- Make a copy of this spreadsheet.
- Place this file in your Chapter 7 folder.
- Rename the file to Lesson 7-1-(Your Initials)
- Complete the spreadsheet according to the directions on page 186 or below.
- 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
- 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
- Complete this self-assessment for Lesson 7-1. You can use your textbook and notes to complete this assessment.
Application Problem 7-1
- 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.