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
- 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
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- Make a copy of this spreadsheet.
- Place this file in your Chapter 7 folder.
- Rename the file to Lesson 7-2-(Your Initials)
- 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
- 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
- Complete this self-assessment for Lesson 7-2. You can use your textbook and notes to complete this assessment.
Application Problem 7-2
- 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.