Balance Sheet.ppt

22,356 views

Published on

1 Comment
11 Likes
Statistics
Notes
No Downloads
Views
Total views
22,356
On SlideShare
0
From Embeds
0
Number of Embeds
21
Actions
Shares
0
Downloads
1,157
Comments
1
Likes
11
Embeds 0
No embeds

No notes for slide

Balance Sheet.ppt

  1. 1. Balance Sheet
  2. 2. In Accounting, An Itemized Statement Of What One Owns, What One Owes, and What One Is Worth Is Called A:
  3. 3. Balance Sheet
  4. 4. The First Step In Setting Up Records Is To Find Out: 1. What One Owns 2. What One Owes 3. What One Is Worth
  5. 5. Balance Sheet Reports What A Business Owns-Assets Owes-Liabilities Worth-Owner’s Equity
  6. 6. (Name of Business) Navarro’s Car Wash (Name of Form) Balance Sheet (Date) June 30, 2007 Navarro’s Car Wash Balance Sheet June 30, 2007 Center
  7. 7. Sample Navarro’s Car Wash Balance Sheet June 30, 2006
  8. 8. Three Sections of a Balance Sheet <ul><li>Assets </li></ul><ul><li>Liabilities </li></ul><ul><li>Owner’s Equity </li></ul>
  9. 9. Assets-(lst Section) <ul><li>Things You Own </li></ul><ul><li>Examples: </li></ul><ul><li>Supplies </li></ul><ul><li>Cash </li></ul><ul><li>Equipment </li></ul>
  10. 10. Sample Assets Total Assets Supplies Equipment Cash On Hand Navarro’s Car Wash Balance Sheet June 30, 2006
  11. 11. Liabilities-2nd Section Things A Business Owes -Accounts Payable-Sears, Inc. -Accounts Payable-IBM Company
  12. 12. Sample Total Liabilities Accounts Pay./Sears, Inc. Accounts Pay.-IBM Liabilities Total Assets Supplies Equipment Cash Assets Navarro’s Car Wash Balance Sheet June 30, 2006
  13. 13. Owner's Equity What A Business Is Worth -Jose L. Navarro, Capital -Jose L. Navarro, Withdrawals
  14. 14. The Worth Of A Business -Joe Navarro, Capital -Joe Navarro, Withdrawals Owner's Equity
  15. 15. Sample Owner’s Equity Total Liabilities JL Navarro, Capital Accounts Pay./TG Supplies Dell Computers Liabilities Total Assets Supplies Equipment Cash Assets Navarro’s Car Wash Balance Sheet June 30, 2006
  16. 16. A = L + O.E. The Accounting Equation
  17. 17. Jon Clark, For Example, Owns The Following: Cash On Hand $ 5,500 Equipment 25,000 Supplies 2,000 Office Equipment 5,000 Office Supplies 1,000 Total Amount Owned $38,500
  18. 18. Jon Clark Owes The Following: Owed To TG Supply 1,000 Owed To Max Furniture 400 Total Amount Owed $ 1,400
  19. 19. Assets Must Equal Liabilities + Owner's Equity
  20. 20. The Accounting Equation <ul><li>Assets = Liabilities + Owner’s Equity </li></ul><ul><li>$38,500 = $1,400 + $37,100 </li></ul>Owns = Owes + Worth
  21. 21. Jon Clark Owns $38,500 Jon Clark Owes 1,400 Jon Clark Is Worth $37,100 Here Is The Process:
  22. 22. By Subtracting What Jon Clark Owes ($1,400) From What He Owns ($38,500) We Find What He Is Worth. Formula Owns - Owes = Worth
  23. 23. Summary <ul><li>Balance Sheet Reports: </li></ul><ul><li>What A Business Owns-Assets </li></ul><ul><li>What A Business Owes-Liabilities </li></ul><ul><li>What A Business is Worth-Owner’s Equity </li></ul>
  24. 24. Prepare a Balance Sheet

×