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Balance Sheets Prepare

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Balance Sheet Within the chart of accounts the balance sheet accounts are listed first, followed by the income statement accounts. In other words, the accounts are organized in the chart of accounts as follows:        Assets Liabilities Owner's (Stockholders') Equity Revenues or Income Expenses Gains Losses Examples of asset accounts* that are reported on a company's balance sheet include:               Cash Petty Cash Temporary Investments Accounts Receivable Inventory Sup
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  Balance Sheet Within the chart of accounts the balance sheet accounts are listed first, followed by the incomestatement accounts. In other words, the accounts are organized in the chart of accounts asfollows:  Assets  Liabilities  Owner's (Stockholders') Equity  Revenues or Income  Expenses  Gains  Losses Examples of asset accounts * that are reported on a company's balance sheet include:  Cash  Petty Cash  Temporary Investments  Accounts Receivable  Inventory  Supplies  Prepaid Insurance  Land  Land Improvements  Buildings  Equipment  Goodwill   Bond Issue Costs  Etc.Usually these asset accounts will have debit  balances. Contra assets are asset accounts with credit  balances. (A credit balance in an asset account iscontrary—or contra—to an asset account's usual debit balance.) Examples of contra assetaccounts include:  Allowance for Doubtful Accounts  Accumulated Depreciation-Land Improvements  Accumulated Depreciation-Buildings  Accumulated Depreciation-Equipment  Accumulated Depletion  Etc. Classifications Of Assets On The Balance Sheet  Accountants usually prepare classified balance sheets . Classified means that the balancesheet accounts are presented in distinct groupings, categories, or classifications. The assetclassifications and their order of appearance on the balance sheet are:  Current Assets   Investments  Property, Plant, and Equipment  Intangible Assets  Other Assets  An outline of a balance sheet using the balance sheet classifications is shown here:   Example CompanyBalance SheetMay 31, 2007ASSETS LIABILITIES & OWNER'S EQUITYCurrent AssetsCurrent LiabilitiesInvestmentsLong-term liabilitiesProperty, Plant, and Equipment Total Liabilities Intangible AssetsOther AssetsOwner's EquityTotal AssetsTotal Liabilities & Owner's Equity Asset Accounts   No. Account TitleToIncreaseDescription/Explanation of Account  101 Cash DebitChecking account balance (as shown in company records), currency, coins,checks received from customers but not yet deposited.120 AccountsReceivable Debit Amounts owed to the company for services performed or products sold butnot yet paid for.140 MerchandiseInventory DebitCost of merchandise purchased but has not yet been sold.150 Supplies DebitCost of supplies that have not yet been used. Supplies that have been usedare recorded in Supplies Expense .160 Prepaid Insurance DebitCost of insurance that is paid in advance and includes a future accountingperiod.170 Land DebitCost to acquire and prepare land for use by the company.175 Buildings DebitCost to purchase or construct buildings for use by the company.178 AccumulatedDepreciation -Buildings Credit Amount of the buildings' cost that has been allocated to  DepreciationExpense since the time the building was acquired.180 Equipment DebitCost to acquire and prepare equipment for use by the company.188 AccumulatedDepreciation - CreditAmount of equipment's cost that has been allocated to DepreciationExpense since the time the equipment was acquired.  Equipment Examples of liability accounts reported on a company's balance sheet include:  Notes Payable  Accounts Payable  Salaries Payable  Wages Payable  Interest Payable  Other Accrued Expenses Payable  Income Taxes Payable  Customer Deposits  Warranty Liability  Lawsuits Payable  Unearned Revenues  Bonds Payable  Etc.These liability accounts will normally have credit balances. Contra liabilities are liability accounts with debit balances. (A debit balance in a liability accountis contrary—or contra—to a liability account's usual credit balance.) Examples of contra liabilityaccounts include:  Discount on Notes Payable  Discount on Bonds Payable  Etc. Classifications Of Liabilities On The Balance Sheet Liability and contra liability accounts are usually classified (put into distinct groupings, categories,or classifications) on the balance sheet. The liability classifications and their order of appearance on the balance sheet are:  Current Liabilities  Long Term Liabilities  Etc. Liability Accounts   No. Account TitleToIncreaseDescription/Explanation of Account  210 Notes Payable CreditThe amount of  principal due on a formal written promise to pay. Loans frombanks are included in this account.215 AccountsPayable Credit Amount owed to suppliers who provided goods and services to the company butdid not require immediate payment in cash.  220 Wages Payable CreditAmount owed to employees for hours worked but not yet paid.230 Interest Payable Credit Amount owed for interest on Notes Payable up until the date of the balancesheet. This is computed by multiplying the amount of the note times the effective interest rate times the time period.240 UnearnedRevenues Credit Amounts received in advance of delivering goods or providing services. Whenthe goods are delivered or services are provided, this liability amount decreases.250 Mortgage LoanPayable CreditA formal loan that involves a lien on real estate until the loan is repaid. Owner's Equity —along with liabilities—can be thought of as a source of the company's assets.Owner's equity is sometimes referred to as the  book value of the company ,because owner'sequity is equal to the reported asset amounts minus the reported liability amounts.Owner's equity may also be referred to as the residual  of assets minus liabilities. Thesereferences make sense if you think of the basic accounting equation:   Assets = Liabilities + Owner's Equity and just rearrange the terms: Owner's Equity = Assets - Liabilities Owner's Equity are the words used on the balance sheet when the company is a soleproprietorship .If the company is a corporation, the words Stockholders' Equity  are usedinstead of Owner's Equity. An example of an owner's equity account is Mary Smith, Capital  (where Mary Smith is the owner of the sole proprietorship). Examples of stockholders' equityaccounts include:  Common Stock  Preferred Stock  Paid-in Capital in Excess of Par Value  Paid-in Capital from Treasury Stock  Retained Earnings  Etc.Both owner's equity and stockholders' equity accounts will normally have credit  balances. Contra owner's equity accounts  are a category of owner equity accounts with debit  balances.(A debit balance in an owner's equity account is contrary—or contra—to an owner's equityaccount's usual credit balance.) An example of a contra owner's equity account is Mary Smith,Drawing  (where Mary Smith is the owner of the sole proprietorship). An example of a contrastockholders' equity account is Treasury Stock . Classifications of Owner's Equity On The Balance Sheet Owner's equity is generally represented on the balance sheet with two or three accounts (e.g., Mary Smith, Capital ;  Mary Smith, Drawing ;and perhaps Current Year's Net Income ).  Click

Cyanide

Jan 19, 2018
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