Creating a company We make up our own numbers

a. The First years Income Statement Single Step, must have at least the following

accounts and may have others

i.Service Revenue or sales revenue

ii.Expenses

1.Rent Expense

2.Utility Expense

3.Salary Expense

4.Insurance Expense

iii.Net Income

b.Accounts for first years Ending Balance Sheet Classified

i.The Balance Sheet must have at least the following asset accounts and may

have others as needed.

1.Cash

2.Accounts Receivable

3.Supplies

4.A Prepaid Asset

5.Equipment and accumulated depreciation

6.Building

ii.The Balance Sheet must have at least the following liability accounts and may

have more as needed

1.Accounts Payable

2.Salary Payable

3.Unearned Revenue

4.Mortgage

5.Notes Payable

iii.The Balance Sheet must have at least the following Stockholders Equity

Accounts and may have others as needed.

1.Common Stock

2.Retained Earnings