Instructions for a Simple Income Statement for Sole Proprietorships/Partnerships

MJC Revised 5/2012 Page 1

Morrison Pet Supply Company

Income Statement

For the Month Ended, December 31, 20XX

Revenue:

Fees Earned $X,XXX

Operating Expenses:

Salaries Expense $X,XXX

Rent Expense X,XXX

Insurance Expense X,XXX

Depreciation Expense X,XXX

Supplies Expense X,XXX

Total Operating Expenses X,XXX

Net Income X,XXX

Systematic Instructions

Start with the three-line header, which includes the name of the company, the title of the

statement, and the fiscal period covered by the statement (i.e. month, year, or fiscal year).

1. On the first line of the body of the statement place the title “Revenues: in the left

hand column. This is a header so no dollar amount is used.

2. List all revenues and place the dollar amounts in the right hand column(s), if more

than one source of revenue add total revenues to the line after the last revenue.

3. On the next line place the title “Operating Expenses:” in the left hand column.

This is another header so no dollar amount is used.

4. Next, list each expense. Place the title for each expense account in the left hand

columns. Place the dollar amount for each expense in the middle column.

5. Next, total all of the expenses. Place the title “Total Operating Expenses” in the

left hand column. Place the dollar amount in the right hand column.

6. On the last line, subtract the total operating expenses from the total revenue(s).

Place the title “Net Income” in the left hand column. Place the dollar amount in

the right hand column. Double underline the answer. If a net loss occurs

(Expenses exceed revenues) then place the title “Net Loss” in the left hand

column.

Note: Always underline your final total and single underline any addition or subtract. Place dollar

signs at the top and bottom of any column.