Here are basic instructions and outline for a standard
balance sheet:
The balance sheet is prepared with data from
the prior year’s balance sheet plus the current income statement. The income statement
is usually presented with the balance sheet.
The sheet is
prepared with Assets on the left side, Liabilities on the
right.
On the assets side list all assets owned or owed to
company. On the liability side list all debts, obligations and claims payable (usually
in then next 12 months or next accounting period).
Total
Liabilities plus Net Worth must match the Total
Assets.
Here is an outline for a standard balance
sheet:
Assets
Liabilities
Current
Assets Current
Liabilities
Cash
Accounts
payable
Accounts Receivable
Notes payable
Inventory
Interest payable
Short
term investments Taxes
payable
Fixed Assets
Long-Term
Liabilities
Land
Notes
payable
Buildings
Long-term
debt
Improvements
Equipment
Furniture
Automobiles/vehicles
Other
Accumulated
net earnings
Patents and
copyrights
Total Assets: _____________________
Total Liabilities: __________________
Net
Worth: _________________________
Here is how your balance
sheet would look with the data you
provided:
Assets
Liabilities
Current Assets
Current
Liabilities
Cash
195,000.00 Accounts Payable:
160,000.00
Accounts Rc. 137,000.00
Long-Term Liabilities
Inventory
264,000.00 Notes payable
160,000.00
Fixed Assets
2,800,000.00 Long-Term Debt
1,195,300.00
Other
Assets
Patents
Cpyrts.
780,000.00
Accum.
Ret
Earnings
1,934,000.00
Total Assets:
6,110,000.00 Total Liabilities:
1,515,300.00
Net Worth:
4,594,700.00
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