Step 5b:

A classified balance sheet is split into four separate parts. Current Assets Fixed Assets Current Liabilities Long Term Liabilities

Assets that will be changed into cash within one year and or/assets that will be used up within one year. Examples include: Cash, A/R, Supplies, Insurance.

Assets that will be kept for longer than one year Examples include equipment, furniture, buildings, depreciation (contra asset, takes away) etc.

Liabilities that will be paid within one year. Examples include: A/P, Bank Loan Payable

Liabilities that take longer that one year to repay. Example: Mortgage

Mr. LeBlanc's Business Balance Sheet Month Ending March 31, 2014 Assets Current Assets Bank520 Accounts Receivable12260 Merchandise Inventory35651 Supplies350 Parts and Materials4560 Pre Paid Insurance Fixed Assets Equipment18600 Less: Accumulated Depreciation Truck18000 Less: Accumulated Depreciation Total Assets60934 Liabilities and Owners Equity Current Liabilities Accounts Payable5360 GST Payable850 Less GST Recoverable PST Payable H. Rohr Capital Balance January 1,29010 Net Income50154 Drawings25000 Increase in Capital25154 Balance December Total Liabilities and Equity60934

1.Complete the heading 2.Prepare the current assets portion a)Insert title “Current Assets” to the left margin b)Insert account titles indented to right and put their amounts in the middle column c)Underline the final amount in the middle column. Total all of the current assets and put that total in the third column, beside the last amount you entered. 3.Prepare the fixed assets portion a)Insert title “Fixed Assets” to the left margin b)Insert account titles indented to right and put their amounts in the middle column c)Total your depreciation amount, insert a title called “Less: accumulated depreciation” and insert the number in the middle column. d)Underline the final amount in the middle column. Total all of the fixed assets and put that total in the third column, beside the last amount you entered.

4. On a new line write total assets at the left margin. Add up the two total assets numbers in the third column. Single underline the last number in the third column and double underline your total. 5. Prepare the Current Liabilities portion a)Insert title “Current Liabilities” to the left margin b)Insert account titles indented to right and put their amounts in the middle column c)Underline the final amount in the middle column. Total all of the current liabilities and put that total in the third column, beside the last amount you entered.

6. Prepare the Long Term Liabilities portion a)Insert title “Long Term Liabilities” to the left margin b)Insert account titles indented to right and put their amounts in the middle column c)Underline the final amount in the middle column. Total all of the Long Term liabilities and put that total in the third column, beside the last amount you entered. 7. Prepare the Capital Portion a)Insert Title “ Owner Name, Capital” along left margin. b)Write “balance, date” indent, and put the amount in the middle column. c)Write net income and indent further write total in the first column

d) Write “drawings” indent and put the amount in the first column and underline it. e) Subtract net income from drawings. If the difference is positive write “increase in equity” if it is negative write “decrease in equity” put the total in the middle column and underline it. f) Write balance and the end of the fiscal period, indent and put the total in the third column, single underline. g) Add up the third column, write “Total Liabilities and Owners Equity, place the total in the third column. Double underline and check to make sure that they and assets balance.

Identify the item Fraser River Enterprises Stanley Park Enterprises