In any company or institution must have the financial statements to determine input and output

all the expenses of the company. In the financial reporting itself is no such thing as income
statement to know these companies get profit or loss within a certain time period.

Steps in the creation of income statements are also not indiscriminate. Because in the creation of
income statements there are accounts of revenue and expense accounts. The difference between
total revenue and total value cost value is profit or loss. If the company’s income is greater than
the cost a profit. Whereas if income is less than the cost of the company suffered a loss.

The reson why the writer choose the idea because income statement to know the company’s
position profit or loss. So, the company can take the right decision for company’s activity in next
period.

a. can be known to the position of the gains and losses of an enterprise.

b. legal basis Can repair efforts.
c. as a measure of the level of progress of a business.

Income statement purposes, among others:

 know the profit of the gross and net profit of a business ,

 to know the position of the sales activity forward whether or not , and
 in reference to make as steps sale or business activities of the next.

How to form and manner of making income statemen?

For effectiveness of this paper , hence writers demarcate the report profits only loss concerning
the form and measures in making report its earnings .

In a discussion paper on income statement, the writer uses the method deskriptive
(menggambarkan).

single Step ; profit/loss is the difference between all income and all costs. The calculation of
profit/loss done by grouping all income and narrow it down with all the costs (without a separate
operational income (cost) income (cost) from non-operational).

Step by step of making income statement

Before making income statements, write down all the account revenue and expense accounts to
the column in the balance sheet Profit/loss columns. Account fees are supposed to be on the side
of the income account debit, while being on the side of the credit. Difference between total
revenue and total cost is profit/loss and listed in row% u201CPenghitungan% u201D profit/loss.
If a company produces a profit then listed in the Debit column on Profit/loss in balance sheet
columns. And vice versa if the company suffered a loss then listed on the Credit side. Debit
profit writing solely to balance Debit and credit balance in column Profit/loss in balance sheet
columns. After that, in sequence, do the following things to make profit/loss:

a. write down the company name, phrasa% u201CLaporan% u201D Profit/loss

b. To type in single step:
% uF0D8 income Include accounts and information value rupiahnya for each revenue
account, starting from the operating income followed by non-operating income. % uF0D8
summing these all income and give a description of% u201CTotal% u201D Income. %
uF0D8 Identify cost accounts and information rupiahnya for each account cost, starting
from the operating costs followed by the cost of non-operational. % uF0D8 summing
these all costs and give a description of% u201CTotal% u201D Cost. % uF0D8 Compute
the difference between the revenues and costs. Give a description of% u201CLaba%
u201D (loss). If a loss, the difference is written in parentheses.
c.
 wrote akun-akun operational income and information rupiah value to each
account the gain .
 uF0D8 summing these all operating income and give a description of%
u201CTotal% u201D. operating income % uF0D8 Identify operational cost
accounts and information value rupiahnya for each cost account. % uF0D8
summing these all operational costs and give a description of% u201CTotal%
u201D operational expenses. % uF0D8 Compute the difference in operating
income to operating costs. Give a description of% u201CLaba (loss) Operational
% u201D. If a loss, write the difference in parentheses. % uF0D8 To non-
operational activity, perform the same steps as from top to bottom. % Count%
uF0D8 u201CLaba (loss) Net% u201D by adding% u201CLaba (loss)
Operational% u201D and% u201CLaba (loss) Non-operational% u201D.

The first order financial reports are made is reporting profit/loss statement (income statement).
Income statement contains a benchmarking report of income and expenses that occur within one
(1) over the same period. Unsubstantiated reports profit/loss then companies can know the results
of business activity for a period. If your income is greater than the cost of the company's profit.
Conversely, if income is less than the cost of the company experienced a loss.

Form reports profit/loss can either be a single step or step increments. Using single-step form,
profit is calculated based on income and expense classification based on operations performed
without and non-operational. While using the form of gradual steps then the income and cost of
each grouped based on operational and non-operational.