This document provides instructions for preparing a balance sheet in 8 steps: write the heading, prepare the asset, liability, and owner's equity sections by listing accounts and amounts, add the section amounts and compare totals, rule single lines between sections, write the totals, rule double lines at the bottom, and provides a terms review defining a balance sheet.

1. PREPARING A BALANCE SHEET 5. Add amounts and compare the totals. Lesson 1-3, page 14 5 1 3 4 2 7 6 1. Write the heading. 2. Prepare the assets section. 3. Prepare the liabilities section. 4. Prepare the owner’s equity section. 6. Rule single lines. 7. Write the totals. 8. Rule double lines. 8

2. T ERMS REVIEW balance sheet Lesson 1-3, page 15