1. Professor Eric Carstensen
The Balance Sheet
Professor Eric Carstensen
MiraCosta College

2. The Balance Sheet
Also known as the Statement of Financial Position, this statement is as of a certain date, rather that for a period of time (as with the other three statements). Some refer to it as a ‘snapshot’ of the company.
The basis of the Balance sheet is the Accounting Equation.
There are two presentations of the balance sheet as well as two different forms.

3. The Accounting Equation
Assets =
Liabilities +
Owners' Equity
An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit.
A liability is a claim against the assets, or legal obligations of a person or organization, arising out of past or current transactions or actions.
Owner's equity represents the owner's investment in the business minus the owner's draws or withdrawals from the business plus the net income since the business began.
A few selected examples of each type of account
* Cash
* Accounts Payable (A/P)
* Paid In Capital (Owner
* Accounts Receivable (A/R)
* Unearned Revenue
Investment, Common Stock)
* Supplies
* Notes Payable
* Retained Earnings
* Prepaid Insurance
* Bank Loans
* Equipment

4. Unclassified Balance Sheet
Assets
Liabilities
Cash
$ 25,800
Accounts Payable
$14,100
Accounts Receivable
10,300
Wages Payable
1,500
Supplies
1,200
Interest Payable
Prepaid Insurance
5,400
Unearned Revenue
7,900
Computer Equip
51,600
Notes Payable
20,000
Total Liabilities
44,700
Owners' Equity
Total Equity
49,600
Total Assets
$ 94,300
Total Liabilities & Equity

5. Classified Balance Sheet
Assets
Liabilities
Cash
$ 25,800
Accounts Payable
$14,100
Accounts Receivable
10,300
Wages Payable
1,500
Supplies
1,200
Interest Payable
Prepaid Insurance
5,400
Unearned Revenue
7,900
Total Current Assets
$ 42,700
Total Current Liabs
$ 24,700
Notes Payable
20,000
Computer Equipment
64,000
Total Liabilities
44,700
Accum Dep - Equip
(12,400)
Owners' Equity
Total Plant Assets
51,600
Common Stock
40,000
Retained Earnings
9,600
Total Equity
49,600
Total Assets
$ 94,300
Total Liabilities & Equity

6. The Report Form Balance Sheet
Assets
Cash
$ 38,500
Accounts Receivable
3,900
Supplies
700
Prepaid Insurance
4,400
Total Current Assets
$ 47,500
Computer Equipment
14,200
Accum Deprec - Equipment
(100)
Total Plant Assets
14,100
Total Assets
$ 61,600
Liabilities
Accounts Payable
$ 5,600
Wages Payable
2,000
Interest Payable 50
Unearned Revenue
5,700
Total Current Liabilities
$ 13,350
Notes Payable
10,000
Total Liabilities
23,350
Owners' Equity
Common Stock
35,000
Retained Earnings
3,250
Total Owners' Equity
38,250
Total Liabilities & Equity
$ 61,600

7. The Account Form Balance Sheet
Assets
Liabilities
Cash
$ 38,500
Accounts Payable
$ 5,600
Accounts Receivable
3,900
Wages Payable
2,000
Supplies
700
Interest Payable 50
Prepaid Insurance
4,400
Unearned Revenue
5,700
Total Current Assets
$ 47,500
Total Current Liabilities
$ 13,350
Notes Payable
10,000
Computer Equipment
14,200
Total Liabilities
23,350
Accum Deprec - Equip
(100)
Owners' Equity
Total Plant Assets
14,100
Common Stock
35,000
Retained Earnings
3,250
Total Owners' Equity
38,250
Total Assets
$ 61,600
Total Liabilities & Equity

8. The Balance Sheet - Concluded
In this video presentation, we have seen several ways to present Balance Sheet information.
I have prepared other videos on the Income Statement and Cash Flow Statement as well, should you wish to view those.
You might also wish to view the Accounting Cycle presentations to what goes into how the statements are created.