1. * Objective 1.9

2. Objective 1.9 * 3. Objective 1.9 * *The balance sheet is set up in the form of the fundamental accounting equation. A = L + OE. The assets appear on the left side and the liabilities and owners equity appear on the right. *A three line heading is used. The heading tells: *Who- the name of the individual or business *What the name of the financial statement *When the date on which the financial position is determined 4. Objective 1.9 Chris Turner Balance Sheet July 15, 20__ Assets Liabilities Cash $55.00 Owed to Phillip $80.00 Bank Balance $215.50 Owed to Dad $200.00 Bicycle $185.00 Overdue Fines $12.50 Stereo $250.00 Total Liabilities $292.50 Ski Equipment Owners Equity Chris Turner, Capital $713.00 Total Assets $1005.50 Total Liabilities and Equity $1005.50 Assets = Total Liabilities + Equity Who What When 5. Objective 1.9 *Assets are generally listed in order of their liquidity ( ability to turn asset into cash). The most liquid first such as cash, and bank balance are listed first and followed up by other assets such as equipment's and buildings. *Liabilities are usually listed in the order which they are normally paid. *The financial details are fully disclosed on a financial statement. For example a building may be listed on the statement and have a value of $114 000.00. The amount owed in the mortgage would be listed in the liabilities as mortgage payable. *The final totals are recorded on the same line on each side of the balance sheet and underlined with a double line. 6. Objective 1.9 1. Headings 2. Assets 3. Liabilities 4. Owners Equity 5. Calculate Totals 6. Dollar Signs Preparing The Balance Sheet Handout