REPORTING A CHANGED ACCOUNTING EQUATION ON A BALANCE SHEET

Balance Sheet Preparation A balance sheet can be prepared at anytime to report information about the assets, liabilities, and owner’s equity. Most businesses prepare a Balance Sheet once a month. When one side of a balance sheet is longer on one side than the other, an adjustment is made to make sure the totals of the two sides are on the same line.

5.Add and compare the totals. BALANCE SHEET PREPARATION Write the heading. 2.Prepare the assets section. 3.Prepare the liabilities section. 4.Prepare the owner’s equity section. 6.Rule single lines. 7.Write the totals. 8.Rule double lines. 8 Lesson 2-2, page 30