INCOME STATEMENTHalf Circle

(Advanced)To reproduce the effects on this slide, do the following:On the Home tab, in the Slides group, click Layout, and then click Blank. On the Design tab, in the Themes group, click the arrow next to Colors and then click Metro.On the Insert tab, in the Media group, click Video, and then click Video from file. In the left pane of the Insert Video dialog box, click the drive or library that contains the video. In the right pane of the dialog box, click the video that you want and then click Insert.Tip: For best results with the video on this slide, use a video that is square in format, or use the Crop tool to square video on slide.Under Video Tools, on the Format tab, in the Video Styles group, click the arrow to the right of Video Shape and under Basic Shapes select Chord (second row, second option from left).Drag the top Yellow Adjustment Handle counter clockwise stopping at the bottom center, aligned with the bottom center sizing handle.Drag the second Yellow Adjustment Handle counter clockwise stopping at the top center, aligned with the top center sizing handle, creating a half circle.Select the video, on the Home tab, in the Drawing group, click Arrange, point to Align, and select Align Middle. With the video still selected, under Video Tools, on the Format tab, click the arrow in the bottom right corner of the Video Styles group to open the Format Video dialog box. In the Format Video dialog box, click Position in the left pane, under Position on Slide in the right pane, set the Horizontal to -3.43 from Top Left Corner.Also in the Format Video dialog box, click Shadow in the left pane, under Shadow in the right pane enter the following:Color: Black, Text 1 (under Theme Colors, first row, second option from left)Transparency: 14%.Size: 100%.Blur: 20 pt.Angle: 0Degrees.Distance: 3 pt.Still in the Format Video dialog box, click 3-D Format in the left pane. In 3-D Format on the right pane, under Bevel, click the arrow to the right of Top and under Bevel choose Circle (first option, first row), and then close Format Video dialog.Select the Video, on the Animations tab, in the Timing group, to the right of Start, choose With Previous.Under Video Tools, on the Playback tab, in the Video Options group, select Loop until Stopped.To reproduce the shape effects on this slide, do the following:On the Home tab, in the Drawing group, click Shapes, and then under Basic Shapes, click Arc (third row, twelfth option from the left). On the slide, drag to draw an arc.Drag the right Yellow Adjustment Handle to the bottom center to create a half-circle. Select the arc. Under Drawing Tools, on the Format tab, in the Size group, do the following:In the Shape Height box, enter 6.75.In the Shape Width box, enter 10.With the arc still selected. On the Home tab, in the Drawing group, click Arrange, point to Align, and click Align Middle.Under Drawing Tools, on the Format tab, in the bottom right corner of the Size group, click the arrow opening the Format Shape dialog box. In the Format Shape dialog, click Position in the left pane, under Position and Size in the right pane set the Horizontal to -5.01.Also in the Format Shape dialog box, click Line Color in the left pane, under Line Color in the right pane, select Solid line and then do the following:Click the button next to Color, and then under Theme Colors click White, Background 1 (first row, first option from the left).In the Transparency box, enter 50%.In the Format Shape dialog box, click Line Style in the left pane. Under Line Style in the right pane, set the Width to 1.5 pt. Close the Format Shape dialog.Select the arc. On the Home tab, in the Clipboard group, click the arrow to the right of Copy, and then click Duplicate.Select the second arc. Under Drawing Tools, on the Format tab, in the bottom right corner of the Size group, click the arrow opening the Format Shape dialog box. In the Format Shape dialog, click Size in the left pane, under Size and Rotate in the right pane set the Height to 7 and the Width to 9.5.In the Format Shape dialog, click Position in the left pane, under Position and Size in the right pane set the Horizontal to -4.75 and Vertical to .05.In the Format Shape dialog box, click Line Color in the left pane, under Line Color in the right pane select Gradient line, then do the following: Type: LinearDirection: Linear Down (first row, second option from the left).Under Gradient stops, click Add gradient stop or Remove gradient stop until two stops appear on the slider. Customize the gradient stops as follows:Select the first stop in the slider, and then do the following:In the Position box, enter 0%.Click the button next to Color, and then under Theme Colors click Blue-Grey,Text 2, Lighter 80% (second row, fourth option from the left).In the Transparency box, enter 70%.Select the second stop in the slider, and then do the following: In the Position box, enter 100%.Click the button next to Color, and then under Theme Colors click Periwinkle, Accent 5, Lighter 80% (second row, ninth option from the left).In the Transparency box, enter 90%.Also in the Format Shape dialog box, click Line Style in the left pane. Under Line Style in the right pane, set the Width to 4.5 pt. Close the Format Shape dialog box.To reproduce the text effects on this slide, do the following:On the Insert tab, in the Text group, click Text Box, and then on the slide drag to draw your text box.With the text box selected type in desired title text (Title).Select the text. On the Home tab, in the Font group, do the following:Select Calibri (Headings) in the font list.Click the Bold icon.In the Font Size box, enter 36 pt.Also on the Home tab, in the Paragraph group, select the Center Text icon.Select the text box. Under Drawing Tools, on the Format tab, click the arrow in the bottom right corner of the WordArt Styles group to open the Format Text Effects dialog box. In the Format Text Effects box, select Reflection in the left pane and in Reflection on the right pane click the arrow to the right of Presets and under Reflection Variations select Half Reflection 4 pt Offset (second row, second option from left). Close the Format Text Effects dialog.Also under the Drawing Tools, on the Format tab, in the Size group, click the arrow at the bottom right corner opening the Format Shape dialog box.In the Format Shape dialog box, select Position in the left pane, under Position in the right pane do the following:In the Horizontal box, enter 4.57 from Top Left Corner.In the Vertical box, enter 0.33 from Top Left Corner. Close the Format Shape dialog.On the Insert tab, in the Text group, click Text Box, and then on the slide drag to draw your text box.With the text box selected type in desired body copy text.Select the text. On the Home tab, in the Font group, select Calibri from the Font list, and then select 28 pt from the Font Size list.Under Drawing Tools, on the Format tab, in the Size group, click the arrow at the bottom right corner launching the Format Shape dialog box, select Position in the left pane, and in the Position pane do the following:In the Horizontal box, enter 5 from Top Left Corner.In the Vertical box, enter 1.9 from Top Left Corner.Close the Format Shape dialog box.To reproduce the background on this slide, do the following: On the Design tab, in the bottom right corner of the Background group, click the arrow opening the Format Background dialog box. In the Format Background dialog, click Fill in the left pane. Under Fill in the right pane, select Gradient fill, and then do the following:Type: Linear.Direction: Linear Up (second row, second option from the left). Angle: 270 Degrees.Under Gradient stops, click Add gradient stop or Remove gradient stop until four stops appear on the slider.Select the first stop in the slider, and then do the following:In the Position box, enter 0%.Click the button next to Color, and then under Theme Colors click Blue-Grey, Text 2, Lighter 80% (second row, fourth option from the left).Select the second stop in the slider, and then do the following: In the Position box, enter 30%.Click the button next to Color, and then under Theme Colors click White, Background 1 (first row, first option from the left).Select the third stop in the slider, and then do the following: In the Position box, enter 70%.Click the button next to Color, and then under Theme Colors click White, Background 1 (first row, first option from the left).Select the fourth stop in the slider, and then do the following: In the Position box, enter 100%.Click the button next to Color, and then under Theme Colors click Blue-Grey, Text 2, Lighter 60% (third row, fourth option from the left).Close the Format Background dialog.

OTo be able to learn how to prepare an income statementBJECTIVE2

MONEYWhat is an Income statement3What is an Income statementA statement that shows the financial results of the business for the accounting period

4FINANCIAL RESULTSEARNED PROFIT ?

5FINANCIAL RESULTSINCURRED LOSS?

6WHO NEEDS IT?WHY DO YOU NEED IT?StakeholdersTo make a decisionPARTSTITLESALESCOST OF SALESGROSS PROFITOTHER INCOMEOPERATING EXPENSESPROFIT / LOSS

PARTSTITLESALESCOST OF SALESGROSS PROFITOTHER INCOMEOPERATING EXPENSESPROFIT / LOSSTRADINGACCOUNTTRADINGbuysell$ 50.00

$ 400.00Gross profit$ 350.00PROFORMA

TITLETrading AccountExercise no. 1 Required: Prepare the trading account of Judy for the year ended 31 December 2012.Judy owns a retail store. The following information was provided for the year ended 31 December 2012:Sales200,000Cost of Sales150,000Exercise no. 1 JudyTrading AccountFor the year ended 31 December 2012JudySales$ 200,000Trading account for the year ended 31 December 2012Judy owns a retail store. The following information was provided for the year ended 31 December 2012:Sales200,000Cost of Sales150,000Exercise no. 1 JudyTrading AccountFor the year ended 31 December 2012JudySalesLess: Cost of sales$ 200,000150,000Trading account for the year ended 31 December 2012Judy owns a retail store. The following information was provided for the year ended 31 December 2012:Sales200,000Cost of Sales150,000Exercise no. 1 JudyTrading AccountFor the year ended 31 December 2012JudySalesLess: Cost of salesGross Profit$ 200,000150,00050,000Trading account for the year ended 31 December 2012Exercise no. 2 Jed owns a buy and sell store. The following information was provided for the year ended 31 May 2012:Sales300,000Cost of Sales250,000

Required: Prepare the trading account of Jed for the year ended 31 May 2012.JedTrading AccountFor the year ended 31 May 2012SalesLess: Cost of salesGross Profit$ 300,000250,00050,000Exercise no. 2 What is Net sales?Sales after deducting sales returns or returns inwardsProforma:

Sam owns a retail store. The following information was provided for the year ended 31 March 2012:

Sales200,000Sales Returns 20,000Cost of Sales120,000

Required: Prepare the trading account of Sam for the year ended 31 March 2012Exercise no. 3 Sam Trading Account for the year ended 31 March 2012SalesLess: sales returnsNet Sales$ 200,00020,000180,000Exercise no. 3 Less: Cost of sales120,000Gross profit60,000Sam owns a retail store. The following information was provided for the year ended 31 March 2012:

Sales200,000Sales Returns 20,000Cost of Sales120,000

Required: Prepare the trading account of Sam for the year ended 31 March 2012Exercise no. 3 Hannah owns an online shop. The following information was provided for the year ended 31 January 2012:Sales4,000,700Sales Returns (returns inwards) 231,000Cost of Sales1,230,500Required: Prepare the trading account of Hannah for the year ended 31 January 2012Exercise no. 4 HannahTrading Account for the year ended 31 January 2012SalesLess: sales returnsNet Sales$ 4,000,700231,0003,769,700Exercise no. 4 Less: Cost of sales1,230,500Gross profit2,539,200Quick answer

+-- 2,539,200What is COST OF SALES?

++-

2 ColumnsExercise no. 5 Jess owns an online shop. The following information was provided for the year ended 31 January 2011:

Sales4,000,700Sales Returns (returns inwards)231,000Inventory, opening350,000Purchases1,250,000Inventory, closing125,000

Required: Prepare the trading account of Jess for the year ended 31 January 2011JessTrading Account for the year ended 31 January 2011SalesLess: sales returnsNet Sales$ 4,000,700Exercise no. 5 Less: Cost of salesInventory opening Add: PurchasesLess: Inventory closingGross ProfitExercise no. 5 Jess owns an online shop. The following information was provided for the year ended 31 January 2011:

Sales4,000,700Sales Returns (returns inwards)231,000Inventory, opening350,000Purchases1,250,000Inventory, closing125,000

Required: Prepare the trading account of Jess for the year ended 31 January 2011JessTrading Account for the year ended 31 January 2011SalesLess: sales returnsNet Sales$ 4,000,700231,0003,769,700Exercise no. 5 Less: Cost of salesInventory opening $ 350,000Add: PurchasesLess: Inventory closingGross ProfitExercise no. 5 Jess owns an online shop. The following information was provided for the year ended 31 January 2011:

Sales4,000,700Sales Returns (returns inwards)231,000Inventory, opening350,000Purchases1,250,000Inventory, closing125,000

Required: Prepare the trading account of Jess for the year ended 31 January 2011JessTrading Account for the year ended 31 January 2011SalesLess: sales returnsNet Sales$ 4,000,700231,0003,769,700Exercise no. 5 Less: Cost of salesInventory opening $ 350,000Add: Purchases1,250,0001,600,000Less: Inventory closing125,000Gross ProfitExercise no. 5 Jess owns an online shop. The following information was provided for the year ended 31 January 2011:

Sales4,000,700Sales Returns (returns inwards)231,000Inventory, opening350,000Purchases1,250,000Inventory, closing125,000

Required: Prepare the trading account of Jess for the year ended 31 January 2011JessTrading Account for the year ended 31 January 2011SalesLess: sales returnsNet Sales$ 4,000,700231,0003,769,700Exercise no. 5 Less: Cost of salesInventory opening $ 350,000Add: Purchases1,250,0001,600,000Less: Inventory closing1,475,000125,000Gross Profit2,294,700Quick answer-2,294,700

++DaneTrading Account for the year ended 31 December 2011SalesLess: sales returnsNet Sales$ 5,120,700571,0504,549,650Exercise no. 6 Less: Cost of salesInventory opening $ 320,000Add: Purchases2,253,0002,573,000Less: Inventory closing2,387,880185,120Gross Profit2,161,770Returned goods to the supplier

vExercise no. 7Laura owns a fashion clothing shop. The following information was provided for the year ended 31 January 2012Sales8,120,700Sales Returns451,050Inventory, opening220,600Purchases5,253,000Purchases returns28,000Inventory, closing295,120Required: Prepare the trading account of Laura for the year ended 31 January 2012LauraTrading Account for the year ended 31 December 2011SalesLess: sales returnsNet Sales$Exercise no. 7 Less: Cost of salesInventory opening $Add: PurchasesLess: Inventory closingGross ProfitLess: Purchases returnsLauraTrading Account for the year ended 31 December 2011SalesLess: sales returnsNet Sales$ 8,120,700451,0007,669,650Exercise no. 7 Less: Cost of salesInventory opening $ 220,600Add: Purchases5,253,0005,473,600Less: Inventory closing5,150,480295,120Gross Profit2,519,170Less: Purchases returns28,0005,445,600CarolTrading Account for the year ended 31 January 2011SalesLess: sales returnsNet Sales$ 5,120,700571,0504,549,650Exercise no. 8 (3-4 minutes) Less: Cost of salesInventory at 1 Feb 2010$ 320,000Add: Purchases2,253,0002,573,000Less: Inventory at 31 Jan 20112,374,880185,120Gross Profit2,174,770Less: Purchases returns13,0002,560,000Freight charges of the goods bought from suppliers CARRIAGE INWARDS

account used to record freight charges of the goods bought from suppliers

also called as FREIGHT IN add to PURCHASES

Exercise no. 9Brenda owns an antique shop. The following information was provided for the year ended 31 August 2011Sales5,120,700Sales Returns571,050Inventory, 1 Sept 2010320,000Purchases2,253,000Purchases returns13,000Carriage inwards28,000Inventory, 31 Aug 2011185,120Required: Prepare the trading account of Brenda for the year ended 31 August 2011BrendaTrading Account for the year ended 31 August 2011SalesLess: sales returnsNet Sales$ 5,120,700571,0504,549,650Exercise no. 9 Less: Cost of salesInventory, 1 Sept. 2010$ 320,000Add: Purchases2,253,0002,573,000Less: Inventory, 31 Aug 20112,402,880185,120Gross Profit2,146,770Less: Purchases returns13,0002,588,000Add: Carriage inwards28,0002,601,000ZoeTrading Account for the year ended 28 February 2012SalesLess: sales returnsNet Sales$ 5,120,700571,0504,549,650Exercise no. 10 Less: Cost of salesInventory at 1 Mar 2011$ 320,000Add: Purchases2,253,0002,573,000Less: Inventory 28 Feb 20122,402,880185,120Gross Profit2,146,770Less: Purchases returns13,0002,588,000Add: Carriage inwards28,0002,601,000

Quick answer-2,146,770+++-

SUMMARY trading accountPARTSTITLESALESCOST OF SALESGROSS PROFITOTHER INCOMEOPERATING EXPENSESPROFIT / LOSSPROFIT AND LOSSACCOUNTProfit and loss accountResult: Net Profit (Profit for the Year) or Net Loss (Loss for the Year)Net Profit = If Total Income is more than total expensesNet Loss = If total income is less than the total expensesTitle: Use Profit and Loss account instead of Trading Account

PROFORMA:Exercise no. 11Theresa owns a fashion magazine shop. The following information was provided for the year ended 31 January 2011Gross Profit 20,000Other Income10,000Operating expenses5,000Required: Prepare the profit and loss account of Theresa for the year ended 31 January 2011TheresaProfit and Loss accountFor the year ended 31 January 2012Gross profitAdd: Other income$ 20,00010,00030,000Exercise no. 11 Less: Operating expenseProfit for the year5,00025,000Exercise no. 11Theresa owns a fashion magazine shop. The following information was provided for the year ended 31 January 2011Gross Profit 20,000Other Income10,000Operating expenses5,000Required: Prepare the profit and loss account of Theresa for the year ended 31 January 2011Exercise no. 12Nicolai owns a sports shoe shop. The following information was provided for the year ended 31 January 2012Gross Profit 80,000Other Income20,000Rent5,000Heating and Lighting16,450Wages27,000Required: Prepare the profit and loss account of Nicolai for the year ended 31 January 2012NicolaiProfit and Loss account for the year ended 31 January 2011Gross profitAdd: other income$ 80,00020,000100,000Exercise no. 12 Less: operating expenseRent$ 5,000Heating and lighting16,450Wages48,45027,000Profit for the year51,550Exercise no. 13Claire owns a pet shop. The following information was provided for the year ended 31 January 2011Gross Profit 95,000Other Income12,000Rent5,000Utilities expense16,000Postage and Stationery2,500Heating and Lighting16,450Cleaning expense2,150Wages and Salaries27,000Sundry expenses--Required: Prepare the profit and loss account of Claire for the year ended 31 January 2011ClaireProfit and Loss account for the year ended 31 January 2011Gross profitAdd: other income$ 95,00012,000107,000Exercise no. 13 Less: operating expenseRent$ 5,000Utilities expense16,000Postage and stationery69,1002,500Profit for the year37,900Heating and lighting16,450Cleaning expense2,150Wages and salaries27,000Sundry expense0ClaireProfit and Loss account for the year ended 31 January 2011Gross profitAdd: other income$ 95,00012,000107,000Exercise no. 13 Less: operating expenseRent5,000Utilities expense16,000Postage and stationery69,1002,500Profit for the year37,900Heating and lighting16,450Cleaning expense2,150Wages and salaries $ 27,000Sundry expense0DISCOUNT RECEIVED added to Gross Profit or Part of Other incomeDISCOUNT ALLOWEDadded to Operating expenses

CARRIAGE OUTWARDSadded to Operating expenses

Exercise no. 13Pierre owns a pet shop. The following information was provided for the year ended 31 January 2012Gross Profit 95,000Rent5,000Wages and Salaries27,000Sundry expenses1,200Discount Received 5,000Discount Allowed12,000Carriage outwards 2,600Heating and Lighting1,800Sundry Expenses2,900Required: Prepare the profit and loss account of Pierre for the year ended 31 January 2012PierreProfit and Loss account for the year ended 31 January 2012Gross profitAdd: discount received$ 95,0005,000100,000Exercise no. 13 (page 12) Less: operating expenseDiscount allowed12,000Carriage outwards52,5002,600Profit for the year47,500Wages and salaries27,000Heating and lighting1,800Rent $ 5,000Sundry expense4,100

Exercise no. 14Sarah owns a jewelries and accessories shop whose financial year ends on 31 December. Her trial balance drawn up on 31 December 2013 included the following balances.Additional Information: Stock 31 at December 2013 cost 3,000.Required: Prepare the income statement of Sarah for the year ended 31 December 2013

TATATATATATAOEOIOEOEOEOEOEOEGross Profit$ 37,500Net Profit$ 18,900Exercise no. 15James owns a hardware store whose financial year ends on 31 December. His trial balance drawn up on 31 December 2011 included the following balancesAdditional Information: Stock at 31 December 2011 cost 4,000.Required: Prepare the income statement of James for the year ended 31 December 2011

OETATATATATAOEOEOEOEOETAOIGross Profit$ 85,500Net Profit$ 66,000Exercise no. 16Joe owns a DVD store whose financial year ends on 31 August. His trial balance drawn up on 31 August 2012 included the following balancesAdditional Information: Stock at 31August 2012 cost 4,000.Required: Prepare the income statement of Joe for the year ended 31 August 2012

TATATATATATAOEOIOEOEOEOEOEGross Profit$ 325,440Net Profit$ 254,350If you like my PPT Please endorse me on LINKEDIN

http://www.linkedin.com/pub/judy-nicolas/39/503/368

Thanks!!!

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