2.2 Balance Sheet

A financial statement showing the financial position of a person,

business or other organization.

Preparing a Balance Sheet

Step 1 Write the Statement Heading

_____ Name of the business _____________ _____ Name of the statement ____________ _____ Date of the Statement ____________

Step 2 Write in in the sub-heading “_______” at the top of the

left-side column and write the name of the assets down the column in order of _______. (Cash, A/R, Car, Building)

______ the column.

Preparing a Balance Sheet

Step 3 Write in the sub-heading “________” at the top of

the ___________column and list the liabilities in order in which they will be paid.

Draw a line at the _________to indicate that you are adding the above numbers. Then write “Total Liabilities” and _______ the column.

Step 4 Write in the sub-heading “___________”. Then

write the ___________________________and the amount. (_______________________________)

Preparing a Balance Sheet

Step 5 Add _____________________________.

This must be on the _______ line as Total _________and the numbers must be ______.

Step 6 Place a __________in the ____amount in

_________and ____________________.

Be _____& ________!!!

Preparing a Balance Sheet

Rules to Follow:

1. Avoid ___________________on Balance Sheet unless it is part of the company’s name (i.e. MacDonald Ltd.)

2. Use a ________! _______underline above a total _______underline below all final totals

3. __________– work must be legible and neat

Accounts Receivable & Accounts Payable

___________– money that a __________owes to a business is an asset and referred to as ________________________.

___________– anyone to whom the business owes money is a liability and referred to as ____________________.