Financial Statements Templates

The adjusted trial balance provides the data required to prepare the financial statements.

The student should be prepare and use the following three statements:

The classified income statement

The income statement is a formal report of business operations covering an accounting
period; it is also known as Profit and Loss (P&L) statement.
The single-step income statement lists all revenues in one section followed by all
expenses in one section.
The classified income statement, also known as multi-step income statement breaks the
lists of accounts into a number of classifications. The expenses can be listed under selling
expenses, warehousing expenses, and general and administrative expenses.

The statement of owner’s equity or Statement of retained earnings

This statement reports on the changes that occurred in the owner’s financial interests in
the business during the period.
The statement of owner’s equity reports on the owner’s capital account while the
statement of retained earnings reports on the changes in the retained earnings account.

The classified balance sheet

The balance sheet presents the financial position of a firm on a particular date.
A balance sheet is prepared at the end of an accounting period.
The classified balance sheet divides the assets and liabilities into classes.
Sample CRFA Income statement

Name of Business

Income Statement
For the Year (Month) ended December 31, 2004

SALES
Food x
Beverage x

TOTAL SALES X

COST OF SALES
Food x
Beverage x

TOTAL COST OF SALES X

GROSS MARGIN X

EXPENSES
Sales salaries x
Wages x
Advertising x
Rent x
Depreciation x
Insurance x
Telephone x

TOTAL EXPENSES X

INCOME before Income Tax X

Income tax x

NET INCOME X
Sample Classified Income statement

Name of Business

Income Statement
For the Year (Month) ended December 31, 2004

Operating Revenue
Sales x
Less Sales returns & allowances x

Net Sales X

Cost of goods sold x

Gross Profit X

Operating expenses
Selling expenses
Sales salaries x
Wages x
Advertising x

Total Selling expenses X

General and administrative
Rent x
Insurance x
Telephone x

Total General and Administrative X

Total Operating X

Net Income from Operations X

Other income
Misc. x
Other expense
Misc. x

Net other income (expense) X

Net Income X
Sample Statement of Owner’s Equity or Retained Earnings

Name of Business

Statement of Owner’s Equity

For the Year (Month) ended December 31, 2004

Name of owner, Capital, Jan 1, 2004 x

Net Income for the Year (from I S) x
Less: Withdrawals for the Year x

Increase (Decrease) in Capital X

Name Owner, Capital, December 31, 2004 X

Name of Business

Statement of Retained Earnings

For the Year (Month) ended December 31, 2004

Retained earnings January 1, 2004 x

Add: Net Income for the Year (from I S) x
Less: Withdrawals for the Year x

Retained earnings December 31, 2004 X

Sample Classified Balance Sheet

Name of Business

Balance Sheet
December 31, 2004

ASSETS
Current Assets
Cash x
Accounts receivable x
Less: Allowance for Doubtful Accounts x

X
Prepaid expenses x

Total Current Assets X

Capital Assets (or Fixed Assets)

Equipment x
Less: Accumulated Amortization x
Total Capital Assets X

Total Assets X

LIABILITIES and EQUITY

Current Liabilities
Accounts Payable x
Wages Payable x
Notes Payable x

Total Current Liabilities X

Long Term Liabilities

Loan Payable x
Mortgage x

Total Long Term Liabilities X

Total Liabilities

Owner’s Equity
Name of Owner, Capital X

Total Liabilities and Owner’s Equity