Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 612

Financial Statements

Lesson 18.7

Step 5 of the accounting cycle: You would prepare the financial statements—the income statement, bal-

ance sheet, cash flow statement, and statement of retained earnings. Here are those completed financial

statements:

Chapter 18

Student Guide

Mrs. King’s Interiors

Income Statement

December 31, 20YY

Debit Credit

Revenues

Design Services $8,000

Expenses

Rent Expense $500

Utility Expense $200

Depreciation Expense $360

$1,060 $8,000

Net Income $6,940

$8,000 $8,000

Review of the Accounting Cycle:

Putting it all Together (cont’d)