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Balance Sheet  You better know what accounts go on the Balance Sheet by the point in the course! .

The Balance Sheet  Assets  Anything the Business Owns  Order of Liquidity  Liabilities  Anything the Business Owes  Promise of Money  Maturity Date  Owner’s Equity  Beginning Capital – Add: Net Income – Less: Drawings and/or Net Loss – Ending Capital .

The Account Form Balance Sheet .

LET’S CHANGE IT!! ..The Classified Balance Sheet  Now that you are used to it..

The Classified Balance Sheet  Is a lot more specific than the balance sheet you are used to  We are now grouping accounts within our main categories  Assets & Liabilities more specifically  Different categories allow us to dive into the numbers and compare similar items .

Current Assets   Assets that are smaller and easy to turn into cash within the year Cash.ASSETS  Assets are broken down into two categories 1. Accounts Receivable. Land . Car. Supplies. Inventory 2. Fixed Assets  Sometimes called Plant & Equipment  Long term assets used in making goods or providing services  Large items: Equipment. Building.

Long-Term Bank Loan . Current Liabilities   Debts to be paid off within the year Accounts Payable. Long-Term Liabilities  Debts to be paid off in over a year  Mortgage. HST Payable/Recoverable 2. Bank Loan.LIABILITIES  Very similar to assets  Broken into two groups 1.

Owner’s Equity  What we have already learned  Beginning Balance  Net Income/Loss  Drawings  New Balance .

Analyzing Numbers  A number that stakeholders like to know is called working capital  The amount of money that the company should have to work with on a short term basis  The higher the better  Indicates how easily the business can pay off its debts Current Assets – Current Liabilities .

The Classified Balance Sheet  We are no longer going to put our balance sheet into Left Side and Right Side  This was to teach you the difference between Debit Accounts and Credit Accounts  We will be listing ours from top to bottom  Kind of like the income statement  There will be one column for the accounts  There will be two columns for the numbers .

PT’s PIZZA Balance Sheet October 31. 2013 .

The Asset Section Assets Current Assets Cash Accounts Receivable Total Current Assets Fixed Assets Equipment Automobile Building Land Total Fixed Assets Total Assets xx xx xx xx xx xx xx xx xx .

The Liabilities Section Liabilities Current Liabilities Accounts Payable HST Payable HST Recoverable Total Current Liabilities Long-Term Liabilities Bank Loan Mortgage Payable Total Long-Term Liabilities Total Liabilities xx xx (xx) xx xx xx xx xx .

Capital Oct. Drawings D. Fense. Capital Nov.The Owner’s Equity Section Owner’s Equity D. 31 Add: Net Income Less: D. Fense. 30 $1400 ($950) $450 $45450 $45000 . Fense.

.Put it all together. PAGE 180 IN YOUR TEXT ..

5  Prepare the Balance Sheet on Page 193 in an excel spreadsheet .Homework  Pg 182  #4.