© 2014 Cengage Learning. All Rights Reserved. Learning Objective © 2014 Cengage Learning. All Rights Reserved. LO3Prepare a balance sheet for a business organized as a corporation.

© 2014 Cengage Learning. All Rights Reserved. Balance Sheet Information on a Trial Balance SLIDE 2 LO3 Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Current Assets Section of a Balance Sheet SLIDE 3 LO3 Lesson 16-3 Current Assets Section 2 2 Heading 1 1 Book Value of Accounts Receivable 3 3 Remaining Current Asset Accounts 4 4 Total Current Assets 5 5

© 2014 Cengage Learning. All Rights Reserved. Plant Assets Section of a Balance Sheet SLIDE 4 LO3 Lesson 16-3 Plant Assets Section 1 1 Book Value of Office Equipment 2 2 Total Plant Assets 4 4 Total Assets 5 5 Book Value of Store Equipment 3 3

© 2014 Cengage Learning. All Rights Reserved. Liabilities Section of a Balance Sheet ●Liabilities are classified according to the length of time until they are due. ●Liabilities due within a short time, usually within a year, are called current liabilities. ●Liabilities owed for more than a year are called long-term liabilities. SLIDE 5 LO3 Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Liabilities Section of a Balance Sheet SLIDE 6 LO3 Lesson 16-3 Liabilities Section 1 1 Total Liabilities 3 3 Account Title and Amount of Each Current Liability 2 2

© 2014 Cengage Learning. All Rights Reserved. Stockholders’ Equity Section of a Balance Sheet SLIDE 7 LO3 Lesson 16-3 Stockholders’ Equity Section 1 1 Capital Stock 2 2 Total Liabilities and Stockholders’ Equity 5 5 Total Stockholders’ Equity 4 4 Double Rule 6 6 Retained Earnings 3 3

© 2014 Cengage Learning. All Rights Reserved. Completed Balance Sheet SLIDE 8 LO3 Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Supporting Schedules for a Balance Sheet ●A report prepared to give details about an item on a principal financial statement is called a supporting schedule. ●A supporting schedule is sometimes referred to as a supplementary report or an exhibit. SLIDE 9 LO3 Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 16-3 Audit Your Understanding 1.How does ThreeGreen classify its assets? SLIDE 10 ANSWER Current assets and plant assets Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 16-3 Audit Your Understanding 2.What three items are listed on the balance sheet for an account having a related contra asset account? SLIDE 11 ANSWER 1.The balance of the asset account 2.The balance of the contra asset account 3.The book value Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 16-3 Audit Your Understanding 3.What is an example of a long-term liability? SLIDE 12 ANSWER Mortgage payable Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 16-3 Audit Your Understanding 4.Where are the amounts obtained for the Stockholders’ Equity section of the balance sheet? SLIDE 13 ANSWER From the statement of stockholders’ equity Lesson 16-3

© 2014 Cengage Learning. All Rights Reserved. Lesson 16-3 Audit Your Understanding 5.What are two supporting schedules that might accompany a balance sheet? SLIDE 14 ANSWER Schedule of accounts payable and schedule of accounts receivable Lesson 16-3