Accounting – 12/19/19

I. Bellwork Q&A

Explain how each (3) of the percentages of sales ratios on the income statement are calculated. Use words and formulas. (What is in the numerator and denominator?)

II. Objectives:

Prepare a balance sheet for a service business organized as a proprietorship.
Interpret information from a worksheet to construct a balance sheet in accordance with GAAP

III. Section 7.2 Balance Sheet

Heading of a Balance sheet
Components of a Balance Sheet
Formatting of a balance Sheet
Determining the Capital Balance
- Old Capital Balance – Drawing + Net Income or -(Net Loss) = New Capital Balance

IV. Classwork : On Google Sheets

7-2 Working Together and On Your Own