Chapter 2 The Balance Sheet Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet This tutorial guides you through the basic steps of creating a balance sheet. For more detailed instructions, refer to Section 2.2 of the Accounting 1 textbook. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 1. Write the heading: Who Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 1. Write the heading: Who, What Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 1. Write the heading: Who, What, When. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 2. Under the Assets subheading, list all assets in order of liquidity. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 3. Under the Liabilities subheading, list all liabilities in the order they are due. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 4. Subheadings with more than one item must be totalled. Total the liabilities with a ruled line above the total. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 5. Under the Owner’s Equity subheading, record the Capital amount. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 6. Calculate total assets and total liabilities and owner’s equity. They should match. Include a ruled line above the totals. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 7. Put two ruled lines below the two totals. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition

The Balance Sheet 8. Add dollar signs to the first number in each column, the total assets, and the total liabilities and equity. Chapter 2 – The Balance Sheet l Accounting 1, 7th Edition