1. The Balance Sheet

2. The Balance Sheet A = L + OE
A financial statement used in business and prepared by accountants to show the financial position of that business on a particular date.

3. Accounts Receivable
The money that is owed to a business by its customers. This money is considered an asset to the business.
A debtor is anyone who owes money to the business.

4. Accounts Payable
The money that a business owes to its creditors. This money is a liability of the business.
A creditor is anyone to whom the business owes money.

5. Preparing a Balance Sheet
Mark Bianchet owns “Mark’s Repair Shop”
He has been in business for several years, and specializes in fixing small appliances such as toasters, microwave ovens, fans, coffee makers, vacuums, etc.
Let’s look at Mark’s assets and liabilities

6. Preparing a Balance Sheet
Mark’s Assets:
Cash: 6500
Money owed to him from customers (AR): 8100
Supplies: 500
Spare Parts: 4000
Equipment: 25, 500
Building and land: 175,000
Total Assets?
Mark’s Liabilities
Debts he owes to other businesses (AP): 7350
Bank loan: 11,050
Mortgage: 110,000
Total Liabilities?
Owner’s Equity?

7. Step 1
Statement Headings
Mark’s Repair Shop
Balance Sheet
April 22, 2014
Assets Liabilities
Cash $ Accounts Payable
Accounts
Receivable Bank Loan
Supplies Mortgage Payable
Parts Inventory Total Liabilities $
Equipment
Building and Land Owner’s Equity
Mark Bianchet, Equity $ Total Liabilities and
Total Assets $ Owner’s Equity
Step 2
List Assets
Step 3
List Liabilities
Step 4
Calculate Owner’s Equity
Step 5
Put It All Together

8. Page 299 Review Questions #7, 8, 9
Judy’s Boutique and Snackbar Heaven

9. Preparing a Balance Sheet
Template – this is your good copy!
Practice on your own
Judy’s Boutique
Snackbar Haven

10. Judy’s Boutique Cash 3200 Gord Lewis owes 475 Michael Erb owes 395
Inventory 34000
Furniture/Equipment 23450
Building 94000
Owed to Titan Wholesale 8420
Bank loan 9460
Mortgage 42000
Calculate Judy McCutcheon’s owner’s equity and complete the balance sheet

11. Snackbar Haven Bank Loan 8695.25 Supplies 17742.74 Cash 16941.19
Mortgage
Owed to Lloyd Restaurant Supply
Karen’s Catering owes
Equipment
Building
Furniture
Remember to calculate OE for the owner, Anu Persaud

12. Judy’s Boutique Balance Sheet 23 April, 2014
Assets
Cash $
Accounts Receivable
Inventory
Furniture & Equipment
Building
Total Assets $
Liabilities
Accounts Payable
Bank Loan
Mortgage
Total Liabilities $
Owner’s Equity
J. McCutcheon, Capital $
Total Liabilities and
Owner’s Equity $

13. Snack Bar Haven Balance Sheet April 23, 2014
Assets
Cash $
Accounts Receivable
Supplies
Equipment
Furniture
Building
Total Assets $
Liabilities
Accounts Payable
Bank Loan
Mortgage
Total Liabilities
Owner’s Equity
A Persaud, Capital $
Total Liabilities and
Owner’s Equity $