Chapter 2 Section 2 The Balance Sheet Introduction
Chapter 2 Section 2 The Balance Sheet Introduction 1 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition 2
The Balance Sheet This tutorial guides you through the basic steps of creating a balance sheet. For more detailed instructions, refer to Section 2. 2 of the Accounting 1 textbook. 2 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 1. Write the heading: Who 3 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 1. Write the heading: Who, What 4 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 1. Write the heading: Who, What, When. 5 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 2. Under the Assets subheading, list all assets in order of liquidity. 6 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 3. Under the Liabilities subheading, list all liabilities in the order they are due. 7 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 4. Subheadings with more than one item must be totalled. Total the liabilities with a ruled line above the total. 8 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 5. Under the Owner’s Equity subheading, record the Capital amount. 9 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 6. Calculate total assets and total liabilities and owner’s equity. They should match. Include a ruled line above the totals. 10 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 7. Put two ruled lines below the two totals. 11 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
The Balance Sheet 8. Add dollar signs to the first number in each column, the total assets, and the total liabilities and equity. 12 Chapter 2 – The Balance Sheet l Accounting 1, 7 th Edition
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