Summary
Summary FIRST CLASS - AC100 Income Statement + Balance Sheet Preparation WITH FULL WORKINGS - Part 1
- Institution
- London School Of Economics (LSE)
ALL SCENARIOS INCLUDED
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Preparation of Financial Statements (Income Statement (I/S)) and Statement of FinancialPosition (SOFP))
Notes:
Adjusting entries are NON-CASH, internal transactions no cash is coming in or going
out (cash not touched: not credited/ not accounted for)
DR and CR always by same amount
WATCH OUT FOR DATES THINGS NEED TO BE IN RELEVANT PERIOD if not the case,
merely leave values as they are (eig immer eine date trap)
also look at MONTHS
SOFP
Minus in brackets
Income Statement
NOTE DOWN END OF YEAR ON EXTRA SHEET AND ALWAYS KEEP IN MIND
(Company name)
Income Statement Year Ended (date)
£000 £000 Workings
Sales
Cost of sales
Gross Profit xxx
Administrative expenses
Rent
Salaries and wages
Heat and light
Distribution costs
Directors fees
Insurance
Audit fees
Bad debt written off
Increase in provision for doubtful
debt/ Provision release for
doubtful debt
Depreciation expense (separately
for several factors)
Operating profit xxx
Interest expense/receivable
Other income (dividend received)
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