Income Statement In Canada

Income Statement

Income statement which explain the changes in owners equity caused by operation and certain other activity during a period.


Income can be define in two category

1. Economic Income
   Increase in the wealth of a corporation
2. Accounting Income
   Reported wealth of an entity based on its actual transaction.

Draft of Income statement

Anderson Inc.
Income Statement for the year end 31st December 20xx

Cost of goods can be calculated
Beginning Inventory XXX
Add: Purchases XXXX
Inventory for Sales XXXX
Closing Inventory (XXX)
Cost of Sales XXXX

Operating Exposes
Administration Cost XXX
Selling and Distribution cost XXX
Finance Cost XXX
Total Operating Cost XXXX

Other Income
Income from Investment XXX
Gain from Disposal of Capital Assets XXX
Interest Income XXX
Discounts XXX
Total Other Income XXXX

Income statement balance Net profit or Loss balance will carried forward to changes in equity statement.