The IS is actually part of the BS and was created in order to make the BS more simplified to read. So just think of the IS as a Subsidiary Ledger of the Current Earnings Account. Then at some point in time you are going to move the Current Earnings (could be a Profit or a Loss amount) to Retained Earnings and start with a zero amount in the Current Earnings. From your Journals you will then start making entries into the Current Earnings Subsidiary Ledger commonly referred to as the Income Statement.