1. Preparing a Balance Sheet Assets Liabilities Owner’s Equity (Capital)
LESSON 7-2
6/8/2018
LESSON 7-2
Preparing a Balance Sheet
Assets
Liabilities
Owner’s Equity (Capital)

2. Balance Sheet may also be called:
Statement of Financial Position
Statement of Net Worth
The Accounting Equation
A = L + OE
LESSON 7-2

3. Calculating Balance Sheet Capital
Capital from column 8 of worksheet
+ Net Income (Revenue-Expenses)
(or - Net Loss)
Drawing
____________________________________
Capital on the Balance Sheet
LESSON 7-2

4. BALANCE SHEET
page 187
LESSON 7-2

5. HEADING OF A BALANCE SHEET
page 187 1 2 3
1. Center the name of the company on the first line.
2. Center the name of the report on the second line.
3. Center the date of the report on the third line.
LESSON 7-2

6. ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET
page 188 6
Liability amounts 5
Account titles 1
Assets 4
Liabilities 2
Account titles 3
Asset amounts
Single line 7
Total of liabilities 9
Total Liabilities 8
LESSON 7-2

7. OWNER’S EQUITY SECTION OF A BALANCE SHEET
page 189 1
Owner’s Equity 4
Single line 2
Account title 3
Capital amount 6
Total of assets 8
Total of Liabilities and Owner’s Equity 5
Total Assets 9
Compare totals 7
Total Liab. and Owner’s Eq. 10
Double lines
LESSON 7-2

8. Assignment Workbook page 149, 150, 152.
Page 152 is on the back of If you don’t have page 151 you can use page It is the same form and we will not be doing that problem.
LESSON 7-2