1. 2.2 Balance Sheet A financial statement showing the financial position of a person, business or other organization.

2. Preparing a Balance Sheet Step 1 Write the Statement Heading _____Name of the business _____________ _____ Name of the statement ____________ _____ Date of the Statement ____________ Step 2 Write in in the sub-heading “_______” at the top of the left-side column and write the name of the assets down the column in order of _______. (Cash, A/R, Car, Building) ______ the column.

3. Preparing a Balance Sheet Step 3 Write in the sub-heading “________” at the top of the ___________column and list the liabilities in order in which they will be paid. Draw a line at the _________to indicate that you are adding the above numbers. Then write “Total Liabilities” and _______ the column. Step 4 Write in the sub-heading “___________”. Then write the ___________________________and the amount. (_______________________________)

4. Preparing a Balance Sheet Step 5 Add _____________________________. This must be on the _______ line as Total _________and the numbers must be ______. Step 6 Place a __________in the ____amount in _________and ____________________. Be _____& ________!!!

5. Preparing a Balance Sheet Rules to Follow: 1. Avoid ___________________on Balance Sheet unless it is part of the company’s name (i.e. MacDonald Ltd.) 2. Use a ________! _______underline above a total _______underline below all final totals 3. __________– work must be legible and neat

6. Accounts Receivable & Accounts Payable ___________– money that a __________owes to a business is an asset and referred to as ________________________. ___________– anyone to whom the business owes money is a liability and referred to as ____________________.