Prepare Financial Statement

(INCOME STATEMENT)
REVIEW: TRUE OR FALSE
TRIAL BALANCE is an in-house report, usually
in the form of a spreadsheet, generated at
the end of every accounting period. The main
purpose of a trial balance is to ensure that
the list of credit and debit entries in a
general ledger are mathematically correct
REVIEW: TRUE OR FALSE
The trial balance itself is a
financial statement, but
comprises all the information
required for creating the three
main financial statements
REVIEW: TRUE OR FALSE
The purpose of preparing an
adjusted trial balance is to
ensure that the financial
statements for the period are
accurate and up-to-date.
REVIEW: TRUE OR FALSE
An adjusted trial balance
provides you with the summary
totals of all of your general
ledger accounts after adjusting
entries have been made.
Prepare Financial Statement
(INCOME STATEMENT)
GROUP ACTIVITY: Arrange the steps in preparing Income Statement. 10-
15mins.
• On your spreadsheet/workbook, write the name of the company, the
name of FS (Income statement) and reporting date.
• Write the revenue and the amount on the right side(credit) of the
workbook.
• Generate/secure a copy of adjusted Trial Balance
• Write the expenses and the amount on the left side (debit) of the
workbook.
• Determine the net income/loss by subtracting Total expenses from
revenue.
• On your adjusted trial balance draw a line separating Assets,
Liabilities, Equity, Revenue and Expenses.
CREATE INCOME STATEMENT
1. Generate/secure a copy of adjusted Trial Balance
2. On your adjusted trial balance draw a line separating Assets,
Liabilities, Equity, Revenue and Expenses.
3. On your spreadsheet/workbook, write the name of the company,
the name of FS (Income statement) and reporting date.
4. Write the revenue and the amount on the right side(credit) of the
workbook.
5. Write the expenses and the amount on the left side (debit) of the
workbook.
6. Determine the net income/loss by subtracting Total expenses from
revenue.
GROUP ACTIVITY: 20-30mins.

Each group will be given a copy of Trial

Balance. They will create Income statement
using the steps discussed earlier. The group
are expected to complete the activity in
20mins.
Assessment: