acct280_balance_shee t_0953

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Financial Accounting Columbia College Online Campus ACCT 280 The Balance Sheet Click your mouse to advance slides

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Required Financial Statements GAAP requires 4 components for a complete set of financial statements; all parts must be presented together. Income Statement profit or loss for the month or year Balance Sheet financial position as of a certain date Cash Flow Statement cash received and spent during the year Notes to the Financial Statements supplemental required financial and non-financial disclosures that might effect the investor decisions

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Dropbox 1 Prepare a Balance Sheet We’ll start with a Balance Sheet in this class for week 1 Go to Homework Manager and work the practice problem a couple of times. Then work the Graded problem and submit it for grading. Submit the Graded assignment by the due date. For this assignment you will be given a random set of data and you will have to organize it into the form and format of a Balance Sheet.

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Trial Balance For this tutorial we’ll start with a Trial Balance. This will help set the stage for our study of double-entry accounting over the next 3 weeks. A Trial Balance is a listing of all the accounts in an accounting system, and their balance as of a certain date. The date is the end of the year for annual statements, or the last day of a month for monthly statements.

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Trial Balance Trial Balance A Trial Balance is a list of all the accounts and their balances. Accountants usually start with a Trial Balance, and prepare financial statements from that. All accounts will be used for this assignment, and they are all Balance Sheet accounts.

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The Report Heading Report Heading Every financial report starts with a heading. Even hand-prepared working papers should include a proper heading, and be dated and initialed by the person doing the work A report heading must have the following elements: Company name Report title Report date

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Asset Accounts Asset Accounts The Asset accounts are listed first in a Trial Balance, starting with Cash. They all have Debit balances. Total Assets = $ 93,500

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Liability Accounts Liability Accounts The Liability accounts have Credit balances. They represent debts of the company. Many of the account titles end with the word “payable”. Total Liabilities = $ 40,750

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Stockholders’ Equity Accounts Stockholders’ Equity Accounts The Stockholders’ Equity accounts have Credit balances. They represent the investor’s financial interest in the company. Total Stockholders’ Equity = $ 52,750

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Preparing a Balance Sheet Heading: We start with the heading for a Balance Sheet. This is a Balance Sheet, not a Trial Balance, so we have to use the appropriate report title.

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Balance Sheet Assets: We can list the asset accounts in the same order as on the Trial Balance. At this point we lose the distinction between Debits and Credits.

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Balance Sheet Liabilities: We can list the liability accounts in the same order as on the Trial Balance. We also include a subtotal for Liabilities. This is a “significant subtotal” for investors.

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Balance Sheet Stockholders’ Equity: There are only a few accounts in this section. We also include a subtotal for this section.

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Balance Sheet The Accounting Equation Assets = Liabilities + Stockholders’ Equity The Balance Sheet is in balance.

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Balance Sheet A completed Balance Sheet

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Submitting Dropbox Be sure to submit your completed Dropbox assignment by the due date. All assignments are due by midnight Sunday of each week. Upload your completed assignment to Dropbox 1. I recommend you use a spreadsheet program such as Excel. You will find Excel tutorials on the Content page. Excel will do some of the math for you and is easy to format. If you don’t have Excel you can download a free spreadsheet program from OpenOffice.org. Be sure to save your files in Excel spreadsheet format with an XLS file extension. Good luck with the assignment.