1. LESSON 15-1
Preparing an Income
Statement
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. 2
INCOME STATEMENT INFORMATION
ON A WORK SHEET
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 448
LESSON 15-1

3. 3
REVENUE SECTION OF AN INCOME STATEMENT
page 449
FOR A MERCHANDISING BUSINESS
1
2
3
4
5
8
1.
2.
3.
4.
5.
Heading
Revenue section
Title of revenue account
Sales amount
Less contra accounts
6
6.
7.
8.
9.
9
7
Contra account amounts
Contra account total
Net Sales
Net sales amount
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-1

4. 4
COST OF MERCHANDISE SOLD SECTION OF AN
INCOME STATEMENT FOR A MERCHANDISING
page 450
BUSINESS
1. Cost of
Merchandise Sold
section
2. Beginning
inventory
1
3. Purchases
section
2
3
4. Total cost of
merchandise
available for sale
5. Ending inventory
5
6
4
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
6. Cost of
merchandise sold
LESSON 15-1

5. 5
COMPLETING AN INCOME STATEMENT
FOR A MERCHANDISING BUSINESS
7
1
2
3
4
5
6
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 452
1. Gross Profit on
Sales
2. Expenses section
3. Net Income before
Federal Income Tax
4. Less Federal
Income Tax
Expense
5. Net Income after
Federal Income Tax
6. Double lines
7. Component
percentage
LESSON 15-1

6. 6
TERMS REVIEW
page 454
 net sales
 cost of merchandise sold
 gross profit on sales
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-1

7. 6
TERMS REVIEW
page 454
 net sales
 cost of merchandise sold
 gross profit on sales
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 15-1