How to Prepare an Income Statement (Step by Step)

[@leighsmobilegames4001]

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

[@Accountinguniv]

Happy to Help!

[@cjvswish1041]

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]

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]

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

[@minvs]

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

[@saddestdayever1276]

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]

What is the difference between Managerial Accounting and Financial Accounting?

[@ondinamendoza9022]

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

[@judyl.7811]

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]

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

[@londababy2239]

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

[@jayrobert2016]

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

[@EmmanuelOnitheoneandoni]

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

[@bensonwu1238]

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

[@cheez_its_are_legendary]

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 😭

[@jeaniegem7002]

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

[@MohamedElzorry]

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

[@vipin_rahul]

Very nice. Thanks for the tutorial.

[@fel4834]

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]

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

[@Ntombi_Majara]

Thank you so much 🥰

[@WrightsOrganic]

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!

[@raguljayakumar1177]

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

[@rs_freeman1404]

thanks mate

[@MrKhan55680]

Your video is very informative really appreciated work

[@accountingforbeginners9210]

Income statement simplify,good,well done

[@jialinwang5719]

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]

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!

[@beulahwilliams8885]

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

[@user-lk4wn9dc6r]

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

[@mvuyisiapril1208]

Wow this is very simple. Thanks alot

[@droctopisneeze5621]

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

[@Accountinguniv]

You’re welcome! Check this one out here: How to Make a Cash Flow Statement (Indirect Method) kzbin.info/www/bejne/Z5q3dZ5ug5moZ5o

[@fairyjennlaureta8717]

Thank you so much Godbless you 😊

[@Amandafanai1997]

How often income statement are prepared . quarterly or annually

[@Accountinguniv]

Usually annually

[@NestaAstern]

Thank you.

[@Accountinguniv]

You’re Welcome! Thanks for watching 😃

[@bostonterrier99]

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?

[@stephhodge2182]

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

[@saifkhalifa4179]

DUDE THANK YOU SO MUCCHHHHHHHHH!!!!

[@user-od9ge4ht1s]

Very helpful big up bro❤❤

[@michellelanoy3470]

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

[@Accountinguniv]

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.

[@ksamix934]

could we add the drawing account as part of expences?

[@vinas866]

My exams are getting easier now

[@shaneladkins2227]

Omg very helpful ❤Thank you

[@revengegamingjosss8429]

THANKS. SO MUCH SIR ☺️☺️☺️

[@anxission4593]

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

[@shaniacollins2112]

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

[@shaniacollins2112]

If*

[@kunzangwangyel6696]

helpful.. thank you so much

[@beatricejoseph167]

Dis lesson its fyn more

[@dmitrikozak7837]

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.

[@marjosephpimentel2295]

YOU'RE THE BEST DAMN!!!

[@ShubhamGupta-ki4kc]

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

[@BCPodcast81]

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

[@jessicababaran3367]

wow, thank you so much for this.

[@CallieHope17]

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

[@Accountinguniv]

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

[@patricktan98]

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

[@user-lp2bb6kx4k]

Do you subtract everything to get a total?

[@MG-ui8jk]

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

[@bostonpizzaa8156]

KZbin is teaching me more than uni

[@sweetnpettite]

How do I find out tax rate?

[@Jem9798]

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.

[@jameso3697]

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

[@deepi_kamal]

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

[@Accountinguniv]

You can assume it’s 0

[@deepi_kamal]

@@Accountinguniv thank you sir

[@t0ni440]

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

[@t0ni440]

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

[@Accountinguniv]

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.

[@shawannajones430]

why did we add a negative to the dollar amounts

[@Accountinguniv]

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

[@brookebauer1901]

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

[@uasoranunuhe8895]

I can’t figure out my assignment professor please help

[@nebell9830]

thanks. very helpful

[@shortcakeliccuptea2644]

what google docs add on was he using?

[@FoX84tac022]

@1:45 - proceeds to use Google Sheets xD

[@tabithamcclarity6642]

HI can I purchase these spreadsheets?

[@Accountinguniv]

please email me :) [e-mail]

[@notthefamousguy9235]

Is that Oliver Queen??

[@Accountinguniv]

nailed it

[@shakirahinds6737]

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

[@noels.8345]

Is interest expense the same as interest paid?

[@Accountinguniv]

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

[@hamzafaheem486]

cant i just write cost of purchases

[@brandieclack3851]

Very helpful

[@billyacademy]

i love you..

[@Accountinguniv]

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

[@aungkhantbwar3751]

Profit

[@tyoma6863]

Net Income

[@boomer9116]

Net income

[@ninjapirate123]

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

[@Zynate]

Yeyeyeye

[@Accountinguniv]

Ya! bit.ly/secret-video-vault-free

[@beatricejoseph167]

Dis tr is gudo mehn sharap to him mehn

[@Ploof-jp6ki]

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

[@juliendilauro5900]

keyboard broke yet?

[@Accountinguniv]

On my 5th one actually

[@punchienella2226]

Still made no sense

[@finmotolinia9630]

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]

Great suggestion! Thank you for the feedback.

[@Joker3.5]

Thank you so much 👍🏽🤌🏼

[@marbenfetilo8396]

very helpful. thanks much.