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Instructions for a Classified Balance Sheet

Love Thy Pet Inc,. Balance Sheet December 31, 2010

Assets Current Assets: Cash Notes Receibable Interest Receivable Pet Supplies Prepaid Insurance Prepaid Rent Total Current Assets Long-Term Investments: Investment in stock of Intel Corp. Investment in real estate Property, Plant, and Equipment: Land Building Accumulated Depreciation-Building Pet Store Equipment Accumulated Depreciation-Pet Store Equipment Office Equipment Accumulated Depreciation-Office Equipment Intangible Assets: Trademark Total Assets Liabilities and Stockholders Equity Current Liabilities: Notes Payable Current Portion Accounts Payable Salaries Payable Unearned Sales Revenues Total Current Liabilities Long-Term Liabilities: Mortgage Payable Notes Payable long-term portion Total Long-Term Liabilities Total Liabilities Stockholders Equity: Common Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity

$X,XXX X,XXX X,XXX X,XXX X,XXX X,XXX $XX,XXX X,XXX X,XXX XX,XXX $XX,XXX X,XXX XX,XXX X,XXX XX,XXX X,XXX XX,XXX XX,XXX XX,XXX XX,XXX X,XXX $XX,XXX

X,XXX

$XX,XXX XX,XXX XX,XXX X,XXX $XX,XXX XX,XXX XX,XXX XX,XXX XX,XXX XX,XXX XX,XXX XX,XXX $XX,XXX

MJC Revised 1-2014

Instructions for a Classified Balance Sheet


Contents
Asset Section of the Classified Balance Sheet: ........................................................................................................... 3 Liabilities Section of the Classified Balance Sheet: .................................................................................................. 4 Stockholders Equity Section of the Classified Balance Sheet: ............................................................................. 5 Final Note............................................................................................................................................................................... 5

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MJC Revised 1-2014

Instructions for a Classified Balance Sheet


Step-by-Step Instructions
Start with the three-line header, which includes first the name of the corporation, second the title of the statement, and third the end date for the fiscal period in which the statement is being prepared.

Asset Section of the Classified Balance Sheet:


1. On the first line of the body of the statement in the center of far left hand columns place the title Assets. No amount is required since this is only a title. 2. On the second line of the body of the statement place the title Current Assets then list all of the current assets, assets that will be used up in one year or less, in order of liquidity (how fast the assets can be changed into cash) on the following lines. Place the amounts in the column second from the right. 3. Add all of the current assets together and place the subtotal in the far right hand column and label it in the far left hand column as Total Current Assets. 4. The next section will be labeled Long-Term Investments. Place this title in the far left hand column of the statement. Then list all investment in other companies stock and any purchase of real estate that the company plans to keep for a long-term investment. Any real estate is property not used to produce revenues for the company. Place the amounts in the column second to the far right hand column and add the amounts and place that subtotal in the column to the far right hand side on the same line as the last asset. 5. The next section will be labeled, Property, Plant and Equipmet. Place this title in the far left hand column of the statement as before with titles there will be no amount in the amount columns. 6. Start with Land then Buildings, Accumulated DepreicationBuilding, Equipment, then Accumulated DepreciationEquipment. Place the amount of the assets in the left hand column with it corsponding accumulated depreciation contra account just below it. Land will not have 7. a accumulated depreication contra account because it does not depreciate over time as other physical assets do in a business. Subtract the accumulated depreciation amount from its asset account to get the book value of the asset. Place those totals for each asset into the middle column. Add all three more or less depending on how many of these type of assets the company owns together and place the total in the far right hand column on the last line of those types of assets.

MJC Revised 1-2014

Instructions for a Classified Balance Sheet


8. The next sectin will be labeled, Intangible assets. Place this title in the far left hand column of the statement. List any intangibles after it. Plance the amount in the far right hand column if there is only one. If there is more than one intangible asset place the amounts in the scecond to the far right hand column and only place the subtotal in the fare right hand column. 9. The last step for the asset section of the balance sheet is to total (add together) all of the amounts in the far right hand column. The title for this line will be, Total Assets. Make sure to place a double underline under the total for this line. Dollar signs are to be placed at the top of any column of numbers that are added or subtracted and at the end grand total.

Liabilities Section of the Classified Balance Sheet:


1. The next section will start with the labeled, Liabilites and Stockholders Equity. Center the title in the left hand column. No amount is required since this is only a title. 2. On the next line place the label, Current Liabilities. These are liabilities that are due to be paid within the next 12 months. List accounts in order of magnitude, highest to lowest, and place the amounts in the second from the right hand column. Place the subtotal for this section in the far right hand column with the title, Total Current Liabilities placed in the far left hand column. 3. The next subsection of this section will be labeled, Long-Term Liabilities. List all of the liabilities that will be paid off in more than one year in this section. Place the amounts in the second to the right hand column. Place the subtotal for this section in the far right hand column. Label the subtotal line, Total Long-Term Liabilites. 4. The last step in this section of the balance sheet is to add up all of the amounts on the far right hand column for this section only. The subtotal for this section will stay in the far right hand column. No double underlines is required for this section because the next section will need to be added to it first. The title for this line will be, Total Liabilites. Place it in the far left hand column.

MJC Revised 1-2014

Instructions for a Classified Balance Sheet


Stockholders Equity Section of the Classified Balance Sheet:
1. The title, Stockholders Equity is placed in the far left hand column at the beginning of this section. List the two accounts of common stock and retained earnings in this section. Place the amounts in the second to the far right hand column. 2. The next step is to subtotal the two accounts and place the subtotal in the far right hand column. The title for this line will be, Total Stockholders Equity. 3. The last step required for the section, Liabilities and Stockholders Equity is add together total liablities and total stockholders equity and place the amount in the far right hand column with a double underline and dollar sign. The title for this line to be placed in the far left hand column will be, Total Liabilities and Stockholders Equity. Final Note Not all companies own the same assets or owe the same liabilities. Place only the sections you need for each company in the balance sheet of a company if the company does not have a specitic type of asset or liability feel free to leave out that section of the balance sheet. Do remember that most companies will have current assets and current liabilities. Not all companies will have long-term assets or intangible assets. Not all companies will have long-term liabilites. The Stockholders Equity is a section that all companies will have on their balance sheet.

MJC Revised 1-2014