income statement

INCOME STATEMENT

written by alita arifiana anisa (12 february 2012)

            Income statement is the financial statement that systematically provides the result of corporations’ activities in a specifics time.

The components of income statement:

1.      Revenue: the increase of assets or the decrease of liabilities that caused by transferring products to the consumers.

2.      Expense: the increase of liabilities or the decrease of assets.

3.      Gain or loss: the differences between revenue and expenses, when the difference is positive, corporation gaining, but when the difference is negative then the corporation suffer loss.

Form of Income statement

There are two kinds of income statement’s form:

1.      Multiple-step

Is the form of income statement that through some steps. It separates the revenue and expense that comes from operational activities and non operational activities.

2.      Single-step

This form does not separate the revenue and expense based on its sources.

The objectives of Income statement

1.      To show the performance and the ability of the corporation to manage its economic resources.

2.      As the sources of information to predict the next period’s performance.

3.      Tools to assess the ability of the corporation to produce profit.

Example of Multiple-Step Income Statement

“WISANGGENI” TRANSPORTATION INCOME STATEMENT FOR THE YEAR ENDED AT 31 DECEMBER 2003
Operating Revenue
Shipping Service			Rp 34.000,00
Operating Expense
Rent-Garage	Rp 3.000,00
Rent-Office	Rp 2.000,00
Drivers Wages	Rp 8.000,00
Fuel	Rp 9.000,00
Reparation and protection	Rp 1.000,00
Retribution and parking	Rp    200,00
Depreciation of Buildings and Equipment	Rp 1.200,00
Insurance	Rp    450,00		Rp 24.850,00
Operating Profit			Rp   9.150,00
Non-Operational Revenue
Interest Revenue	Rp   75,00	Rp     75,00
Non-Operational Expenses
Interest Expense	Rp   90,00	Rp     90,00
Non-Operational Loss			Rp        15,00
Net Profit			Rp   9.135,00

Example of Single-step Income Statement

“WISANGGENI” TRANSPORTATION INCOME STATEMENT FOR THE YEAR ENDED AT 31 DECEMBER 2003
Revenue
Shipping Service		Rp. 34.000,00
Interest Revenue		Rp.        75,00
Total Revenue
Expenses
Rent-Garage	Rp 3.000,00
Rent-Office	Rp 2.000,00
Drivers Wages	Rp 8.000,00
Fuel	Rp 9.000,00
Reparation and protection	Rp 1.000,00
Retribution and parking	Rp    200,00
Depreciation of Buildings and Equipment	Rp 1.200,00
Insurance	Rp    450,00
Interest Expense	Rp      90,00
Total expenses		Rp 24.940,00
Net Profit		Rp   9.135,00

Refference:

Sugiri,Slamet. 2002. Akuntansi Pengantar 1. Yogyakarta: UPP AMP YKPN