Accounting › Section A · Accounting and the financial statements › Topic A.6
Preparing the income statement, equity statement, and balance sheet
Once you can classify every account, preparing the statements is a matter of order and care. This topic takes a list of account balances and turns it, step by step, into an income statement, an equity statement and a balance sheet, first for a sole proprietorship and then for a corporation.
In this topic
- From account balances to statements
- Headings and format
- Worked example: Fernhill's income statement
- Worked example: Fernhill's equity statement and balance sheet
- Checking your statements
- The corporate version
- Ordering a classified balance sheet
- Worked example: Tidewater's retained earnings and balance sheet
- What the statements tell an owner
- Common mistakes to avoid
- Key takeaways
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