How to Prepare an Income Statement (Step by Step)

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  • Опубліковано 28 вер 2024

КОМЕНТАРІ • 110

  • @saddestdayever1276
    @saddestdayever1276 3 роки тому +9

    Hi! I am currently enrolled in Managerial Accounting but we are doing a review for Financial Accounting and we have a test tonight on the income statement! Video definitely helped so thank you!

    • @MJay3060
      @MJay3060 Рік тому

      What is the difference between Managerial Accounting and Financial Accounting?

  • @dmitrikozak7837
    @dmitrikozak7837 3 роки тому +7

    I don't know why this guy is at the top of the search results, not as helpful as many other ones. Wouldn't watch again.

  • @ondinamendoza9022
    @ondinamendoza9022 3 роки тому +12

    Do you have a template of all the statements all linked together? Income, balance and cash flow. Would be so appreciative!

  • @judyl.7811
    @judyl.7811 2 роки тому +3

    1:34 sales revenue is the first thing on income statement.
    2:09 COGS if you're a manufacturing firm. lets assume it's a manufacturing firm.
    The difference is the gross profit.

    • @MJay3060
      @MJay3060 Рік тому

      What would it be instead if it were not a manufacturing firm?

  • @EmmanuelOnitheoneandoni
    @EmmanuelOnitheoneandoni Рік тому

    Thank you, Sir. This is the next step now that I have an rough idea how to read an income statement

  • @bostonterrier99
    @bostonterrier99 Рік тому

    Do you have a video of how to put together a trial balance sheet? Is it necessary to create one of these if you have an accounting software that keeps track of everything for you?

  • @droctopisneeze5621
    @droctopisneeze5621 2 роки тому +1

    Please do a cashflow statement :( This video helped me a lot, thank you

    • @Accountinguniv
      @Accountinguniv  2 роки тому

      You’re welcome! Check this one out here:
      How to Make a Cash Flow Statement (Indirect Method)
      ua-cam.com/video/1iTDk8N4u18/v-deo.html

  • @ksamix934
    @ksamix934 Рік тому

    could we add the drawing account as part of expences?

  • @patricktan98
    @patricktan98 3 роки тому

    What about bad debts? Are they classified under operating expenses as well?

  • @tabithamcclarity6642
    @tabithamcclarity6642 3 роки тому +1

    HI can I purchase these spreadsheets?

    • @Accountinguniv
      @Accountinguniv  3 роки тому

      please email me :) nathanthomas.tutor@gmail.com

  • @ninjapirate123
    @ninjapirate123 2 роки тому

    There is too much for me to memorize in accounting at school

  • @Ploof-jp6ki
    @Ploof-jp6ki 4 місяці тому

    Very basic income statement would only be useful for High School level.

  • @leighsmobilegames4001
    @leighsmobilegames4001 2 роки тому +49

    Sir you are a blessing🙌🏽 You did what my lecturer couldn’t explain in a three hour class in less than 9 mins😌

  • @vinas866
    @vinas866 Рік тому +8

    My exams are getting easier now

  • @cjvswish1041
    @cjvswish1041 2 роки тому +7

    Can’t wait to sit and finally do my Assignment that’s due soon. I been stressing cause i didn’t know how to get started. You’re a blessing🙏🏾

  • @annmaryabraham7322
    @annmaryabraham7322 4 роки тому +21

    this was super helpful! thanks, (3:01 )btw gross profit is called gross profit since it originates from the german word "gross" which means "big" so it's like "big profit"

    • @Accountinguniv
      @Accountinguniv  4 роки тому +4

      I didn’t know the origin! Thanks for sharing :)

    • @minvs
      @minvs Рік тому +1

      Similar thing in french! Big is Gros [masc] or Grosse [fem]

  • @Nzefehmah
    @Nzefehmah 2 дні тому +1

    Accounting is the best subject ever

  • @Nzefehmah
    @Nzefehmah 2 дні тому +1

    I love this man teaching

  • @londababy2239
    @londababy2239 2 роки тому +2

    It’s a magnificent video with high quality, but recommendations on UA-cam made me have knowledge of stray and the legit statements they make too and that’s how I got my tax statements

    • @jayrobert2016
      @jayrobert2016 2 роки тому +1

      Wow that’s nice, how can I reach stray cause I’d like to work on some

  • @jeaniegem7002
    @jeaniegem7002 Місяць тому

    Hello can you also include in your income statement including capitals gains and income tax lossess carried forward

  • @beulahwilliams8885
    @beulahwilliams8885 2 роки тому +1

    This is very useful but I want a full copy including explanation

  • @fel4834
    @fel4834 2 роки тому +2

    Thanks for explaining so well! I was also looking for an explanation for how to prepare a statement of changes in equity but couldn't find anything on your channel :( Do you know if you will be posting a video covering that topic?

    • @Accountinguniv
      @Accountinguniv  2 роки тому +2

      I will put it on the list, thank you! :)

  • @notthefamousguy9235
    @notthefamousguy9235 3 роки тому +3

    Is that Oliver Queen??

  • @michellelanoy3470
    @michellelanoy3470 2 роки тому +1

    Sir why the Operating expenses would negative? Can you explained it?

    • @Accountinguniv
      @Accountinguniv  2 роки тому

      It is very rare if operating expenses are negative. The only way I see that happening is if you had a credit that caused it to be negative. Similar to having a negative balance on a credit card.

  • @jialinwang5719
    @jialinwang5719 3 роки тому +1

    what about the provision for doubtful debts belonging which item? operating expense? Also, what about the other income after sales revenue? Which item it is should belonging?

    • @Accountinguniv
      @Accountinguniv  3 роки тому

      Hi Jialin. Thanks for commenting. This video is lower level accounting best for beginners. For more advanced concepts, I will make a longer more in depth income statement video. Thank you for the suggestion!

  • @shaniacollins2112
    @shaniacollins2112 3 роки тому +1

    What is sales and cogs is not included in the trial balance how do you begin then?

  • @Jem9798
    @Jem9798 2 роки тому

    Just thought I’d share after hearing you say gross don’t mean like disgusting…in Spanish we say how much dirty money you made lol…and how much clean money …it doesn’t sound right in English but in Spanish it sounds right…I never thought of it until now that you said disgusting…lol.

  • @Amandafanai1997
    @Amandafanai1997 2 роки тому +1

    How often income statement are prepared . quarterly or annually

  • @juliendilauro5900
    @juliendilauro5900 2 роки тому +1

    keyboard broke yet?

  • @WrightsOrganic
    @WrightsOrganic 2 роки тому

    That was perfect. Now if this video didn’t exist, how would I find out this information and how to format this on my own? Do you have any good recommendations on books or any information I can read. I read one accounting book but it didn’t have anything about formatting the three statements. Thanks!

  • @Ntombi_Majara
    @Ntombi_Majara 2 роки тому +2

    Thank you so much 🥰

  • @cheez_its_are_legendary
    @cheez_its_are_legendary Рік тому

    Thanks for this video, I need this for my 6th grade business assignment and i haven’t been able to figure out how to do this part 😭

  • @anxission4593
    @anxission4593 2 роки тому

    How did you get income tax expense. Arent the calcularions off?

  • @marjosephpimentel2295
    @marjosephpimentel2295 2 роки тому +1

    YOU'RE THE BEST DAMN!!!

  • @FoX84tac022
    @FoX84tac022 3 роки тому +1

    @1:45 - proceeds to use Google Sheets xD

  • @bensonwu1238
    @bensonwu1238 11 місяців тому

    I am gonna have an accounting test tomorrow, I hope this video can help me.

  • @billyacademy
    @billyacademy 3 роки тому +1

    i love you..

  • @MohamedElzorry
    @MohamedElzorry 9 місяців тому

    Thank you broo
    You have ability to assist the information very easily ❤

  • @MG-ui8jk
    @MG-ui8jk 4 роки тому

    my case here is I am confusing how to divided net profit to get stock dividend and retained earning

  • @rs_freeman1404
    @rs_freeman1404 2 місяці тому

    thanks mate

  • @brookebauer1901
    @brookebauer1901 4 роки тому

    I thought utilities are part of manufacturing overhead. Are they not?

  • @MrKhan55680
    @MrKhan55680 Рік тому

    Your video is very informative really appreciated work

  • @HojiakbarKamoldinov-u9f
    @HojiakbarKamoldinov-u9f 6 місяців тому

    Hey nice work brooooo. Keep it up we want more content from you

  • @uasoranunuhe8895
    @uasoranunuhe8895 3 роки тому

    I can’t figure out my assignment professor please help

  • @vipin_rahul
    @vipin_rahul 3 місяці тому

    Very nice. Thanks for the tutorial.

  • @stephhodge2182
    @stephhodge2182 2 роки тому

    would be nice if we would see the adjusted trial balance while you're doing the entries on the income statement.

  • @beatricejoseph167
    @beatricejoseph167 4 роки тому +1

    Dis lesson its fyn more

  • @ShaheedaBegum-v1t
    @ShaheedaBegum-v1t Рік тому

    Do you subtract everything to get a total?

  • @jameso3697
    @jameso3697 3 роки тому

    how did you find your tax rate??! pls help

  • @shawannajones430
    @shawannajones430 4 роки тому +1

    why did we add a negative to the dollar amounts

    • @Accountinguniv
      @Accountinguniv  3 роки тому

      To show that you are deducting them on the income statement :)

  • @shaneladkins2227
    @shaneladkins2227 Рік тому

    Omg very helpful ❤Thank you

  • @accountingforbeginners9210
    @accountingforbeginners9210 3 роки тому

    Income statement simplify,good,well done

  • @fairyjennlaureta8717
    @fairyjennlaureta8717 10 місяців тому

    Thank you so much Godbless you 😊

  • @shakirahinds6737
    @shakirahinds6737 2 роки тому

    What if you don't get the cost of goods sold

  • @kunzangwangyel6696
    @kunzangwangyel6696 4 роки тому +1

    helpful.. thank you so much

  • @saifkhalifa4179
    @saifkhalifa4179 5 місяців тому

    DUDE THANK YOU SO MUCCHHHHHHHHH!!!!

  • @bostonpizzaa8156
    @bostonpizzaa8156 3 роки тому

    UA-cam is teaching me more than uni

  • @mvuyisiapril1208
    @mvuyisiapril1208 3 роки тому

    Wow this is very simple. Thanks alot

  • @NelisiweShange-k7w
    @NelisiweShange-k7w 6 місяців тому

    Very helpful big up bro❤❤

  • @NestaAstern
    @NestaAstern 2 роки тому +1

    Thank you.

    • @Accountinguniv
      @Accountinguniv  2 роки тому

      You’re Welcome! Thanks for watching 😃

  • @shortcakeliccuptea2644
    @shortcakeliccuptea2644 3 роки тому

    what google docs add on was he using?

  • @hamzafaheem486
    @hamzafaheem486 3 роки тому

    cant i just write cost of purchases

  • @ShubhamGupta-ki4kc
    @ShubhamGupta-ki4kc 4 роки тому +4

    Hello sir. May I know why we haven't included depreciation in the calculation?

    • @BCPodcast81
      @BCPodcast81 Рік тому

      Yes, I also want to know. It got me confused.

  • @deepi_kamal
    @deepi_kamal 4 роки тому +1

    hi sir, I wanted to ask if the Tax % is not given then what we can do?

    • @Accountinguniv
      @Accountinguniv  4 роки тому +1

      You can assume it’s 0

    • @deepi_kamal
      @deepi_kamal 4 роки тому +1

      @@Accountinguniv thank you sir

    • @t0ni440
      @t0ni440 4 роки тому

      @@Accountinguniv so we don't calculate the income tax expense?

    • @t0ni440
      @t0ni440 4 роки тому

      @@Accountinguniv we just leave it to the income before income taxes?

    • @Accountinguniv
      @Accountinguniv  4 роки тому +1

      Depends on if the tax % is given. If it is, you would calculate income tax expense. If it isn’t, just calculate income before taxes.

  • @sweetnpettite
    @sweetnpettite 2 роки тому

    How do I find out tax rate?

  • @revengegamingjosss8429
    @revengegamingjosss8429 2 роки тому

    THANKS. SO MUCH SIR ☺️☺️☺️

  • @CallieHope17
    @CallieHope17 4 роки тому +4

    What should I do if sales revenue and cost of goods sold is not given in the trial balance?

    • @Accountinguniv
      @Accountinguniv  4 роки тому +2

      Just make sure your debuts and credits balance at the end :)

  • @punchienella2226
    @punchienella2226 2 роки тому

    Still made no sense

  • @Accountinguniv
    @Accountinguniv  4 роки тому

    Revenues - Expenses = ??????? Comment Below!

  • @jessicababaran3367
    @jessicababaran3367 3 роки тому

    wow, thank you so much for this.

  • @noels.8345
    @noels.8345 3 роки тому

    Is interest expense the same as interest paid?

    • @Accountinguniv
      @Accountinguniv  3 роки тому

      Not always. Usually things like amortization will be the gap between interest paid and interest expense

  • @finmotolinia9630
    @finmotolinia9630 4 роки тому +2

    Thumbs down only because of the vague descriptions you give. This number to this number. This minus that. Using correct terms would makes this video so much more professional

    • @Accountinguniv
      @Accountinguniv  3 роки тому

      Great suggestion! Thank you for the feedback.

  • @raguljayakumar1177
    @raguljayakumar1177 4 роки тому +1

    It's amazing experience though iam an accountant feeling a free time to watch this series which has a valuable thing to learn... Thankssss

  • @Zynate
    @Zynate 4 роки тому +3

    Yeyeyeye

  • @marbenfetilo8396
    @marbenfetilo8396 3 роки тому

    very helpful. thanks much.

  • @nebell9830
    @nebell9830 3 роки тому

    thanks. very helpful

  • @brandieclack3851
    @brandieclack3851 4 роки тому

    Very helpful

  • @Joker3.5
    @Joker3.5 3 роки тому

    Thank you so much 👍🏽🤌🏼