Preparing an Income Statement

Grade Levels:  10

Subject(s):  Accounting

Learner Outcomes:  The student will prepare an income statement using the information from a worksheet.

Duration: One 45-minute class period.

Materials: Powerpoint presentation on the parts of an income statement, Century 21 Accounting textbook and working papers.

Technology Tools/Courseware:  Presentation device (multi-media projector) and hand-held calculators.

Teacher Notes: The teacher must be literate with preparing and showing a power point presentation.

 Procedures:
                1.  The teacher will begin with a review of the work sheet to reinforce the source of information for preparing the income statement.
                2.  Students will watch the slides to learn the four parts that make up the income statement.
                3.  Direct the students to the worksheet that is to be used and point out the income statement section.
                4.  Show on the form that the heading is to be centered at the top on the first three lines.
                5.  Show that the revenue section is written, next, as it appears on the work sheet.
                6.  Show that the expense section is written, next, as it appears on the work sheet.
                7.  Emphasize legible penmanship, indenting, lining, and double ruling the columns is necessary.
                8.  Find the difference of the total revenues and total expenses and determine if net income or loss and write amount.
                9.  Show the formulas for finding the component percentages, calculate them, and write them in.
              10.  Double rule the columns after verifying correctness of copying amounts and calculations.
              11.  Give students a completed worksheet, income statement form, calculator and assign  Problem 1.
              12.  The students will follow the directions from the Power Point to identify the basic parts of the income statement. Following teacher instruction, the student will be able to correctly enter the amounts and complete the income statement using pencil, working papers, and a calculator.

Modifications:  For special needs students the slide show will be paused to allow time to write terms.
                          Peer tutoring.
                         Extend time for completion.
                         Give more one on one attention.

Enrichment Activities:  Look at business journals to see actual income statements or key amounts in an Excel spreadsheet form.

Evaluation/Assessment:  The handwritten copy of the student's income statement will be evaluated.

West Virginia Instructional Goals and Objectives:  PA 2, PA 14; Applied Math 1.1, 1.16; English-Language Arts 10.51.

National Standards NBEA Accounting, III-Financial Statements; NM-NUM.9-12.2 Understanding Operations;
                                   NL-ENG.K-12.4 Communication Skills

References: Century 21 Accounting textbook.
 
Authors:  Lincoln County Teachers
                  (West Virginia)
           Linda Rockel, Hamlin High School
                  Rod Whitt, Harts High School
                  Vickie Linville, Hamlin High School

 
 
Overview
Lesson 1
Lesson 2
Lesson 3
Lesson 4
Lesson 5