Income statement is a report of the net income or net loss for a specific for a specific period; sometimes called profit and loss or earnings statement.
Steps to creating an income statement!
1.) Write the heading across the three lines on the top (Who? What? When?) 2.) Enter the revenue account names beginning on the second line, indented about a half inch from the left edge of the form. 3.) Enter the balance of each revenue account. 4) Write expenses at the left side of the form. 5) Write the name of the expense accounts on the following lines in order as they appear on the worksheet. Enter the balances in the first column. 6) Draw a single rule under the last expense account balance, 7) Write total expenses on the last line following the last expense account. 8) Add the balances for all expense account and write the total amount in the second column. 9) Draw a single rule under the total expenses amount 10) Subtract the total expenses from the total revenue to find the net income or loss. 11) If the net income or loss equals the net income or loss on the worksheet, draw a double rule under it.