Accounting 105 - Profit & Loss Statements & Balance Sheets

Explore the basics of profit and loss statements and balance sheets within accounting, as this introductory course in a five-course series emphasizes practice and preparing for an accounting career.

Learn the accounting process from journal entries to posting ledgers, build a trial balance, and then generate the profit and loss statement and balance sheet.

Explain how the profit and loss statement summarizes net sales, cost of goods sold, and operating expenses over a year or quarter to forecast profits and inform budgets.

Illustrates how to compute purchases, cartage inwards, discounts, and net purchases, then derives net sales, gross profit, and net profit through a practical pen wholesaling example.

Engage in this interactive accounting course to learn at your own pace and revisit videos. Share feedback and questions in the Q&A to shape updates and improve the course.

explore sample profit and loss templates, tracing income (sales or revenue), cost of goods sold, gross profit, and operating expenses to derive net income, with British and American format notes.

Practice question guides you through preparing a profit and loss statement and balance sheet from a 2019 trial balance, with adjustments for prepaid rent, unused office supplies, and depreciation.

Learn how the balance sheet summarizes assets, liabilities, and shareholders' equity for a year, highlighting current and non-current assets, current liabilities, and the equation assets equals liabilities plus equity.

Learn to prepare the P&L and balance sheet from a trial balance, calculating net sales, COGS, gross profit, operating expenses, commission income, and assets, liabilities, and equity.

This lecture provides a practical Excel template for P&L and balance sheets, detailing net sales, gross profit, and expenses, and shows how to add lines and customize entries.

Practice solving the trial balance and adjusted entries in Excel to build the profit and loss statement and balance sheet, including bad debt and depreciation.

Learn how to use Excel to sort and filter data, apply a template, enter sales, purchases, and expenses, and compute gross profit, net profit, and a balance sheet.

Celebrate completing the accounting series and explore bonus questions to elevate your accounting skills. Stay connected via messages for future accounting and technical analysis courses on the financial markets.