Name: Period:

6.01 Financial Statements Activity

Directions:  Use the provided scenarios to complete a Balance Sheet and Income
Statement.

A Balance Sheet is the condensed statement of a person or entity's financial position.

An Income Statement is the total of income minus expenses, producing either a net
income or net loss.

Scenario: Marsha Jones is a recent college graduate. She worked during college and
managed to save $2,000 in her savings account. The balance of her checking account
(cash) is $440. During her freshman year, Marsha used a credit card and now owes
$1,250 to that credit card company. She has two school loans: one for $5,000 and the
other one for $3,000. She also has a car loan that started out at $12,500, of which she
owes $4,600.

Use this information to fill in Marsha’s Balance Sheet below for today’s date.

Marsha Jones
Balance Sheet
Date: December 10, 2020
Assets Amount Liabilities Amount

Total Assets Total Liabilities

Owner’s Equity
(or Net Worth)
Scenario: Marsha is working part-time at a restaurant. She makes an average of
$200 per week and her parents send her a monthly allowance of $100. She has the
following monthly expenses: Cell phone, $62.00; Gas, $100.00; Food, $200.00;
Entertainment, $100.00; Car payment, $200.00; and Insurance, $125.00.

Use this information to fill in Marsha’s Income Statement for the current month.

Marsha Jones
Income Statement
For the month of December 2020
Income (Revenue):

Total Income (Revenue)

Expenses:

Total Expenses
Net Income