Day 50

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. 

Notes 7-2

1. Obtain a Notes 7-2 handout from your instructor and record your notes through the presentation.  You can also view the presentation here.

Working Together 7-2

1. 1. Make a copy of this spreadsheet.
   2. Place this file in your Chapter 7 folder.
   3. Rename the file to Lesson 7-2-(Your Initials)
   4. Complete the spreadsheet according to the directions on page 192 or below.

   This is a partial work sheet of Ken’s Carpet Cleaning for the month ended April 30 of the current year.  Also given in the attachment is a blank form for completing a balance sheet.  Your instructor will guide you through the following example.

On Your Own 7-2

1. This is a partial work sheet of Anne’s Alterations for the month ended October 31 of the current year.  Also given in your Lesson 7-2 spreadsheet is a blank form for completing a balance sheet.  Work this problem independently.  Complete the spreadsheet according to the directions on page 192.

Self-Assessment 7-2

1. Complete this self-assessment for Lesson 7-2.  You can use your textbook and notes to complete this assessment. 

Application Problem 7-2

1. Using your Lesson 7-2 spreadsheet, click on the Application Problem 7-2 sheet at the bottom left, and complete the problem as directed on page 194 or below.