Following is an income statement calculated based on the different equity theories of accounting.
Entity Theory
Proprietary Theory Orthodox Unorthodox Residual Equity Theory
Revenues $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000
Less:
Operating Expenses
Cost of goods sold $400,000 $400,000 $400,000 $400,000
Depreciation $100,000 $100,000 $100,000 $100,000
Salaries and Wages $200,000 $200,000 $200,000 $200,000
& ...