The document discusses how to prepare a statement of stockholders' equity and a balance sheet. It explains that a statement of stockholders' equity includes sections for capital stock and retained earnings. It also outlines how to calculate working capital and current ratio from information on a balance sheet. Key terms reviewed include long-term liabilities, working capital, and current ratio.

1. LESSON 22-3
Preparing a Statement of
Stockholders’ Equity and
Balance Sheet
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

2. STATEMENT OF STOCKHOLDERS’
EQUITY
2
page 649
1
2
3
1. Write the heading.
2. Prepare the capital stock section.
3. Prepare the retained earnings section.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 22-3

3. 3
BALANCE SHEET
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 650
LESSON 22-3

4. 4
BALANCE SHEET
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
page 650
LESSON 22-3

5. 5
ANALYZING A BALANCE SHEET
page 652
Working Capital
Total Current
Assets
–
Total
Current
Liabilities
$229,594.55
–
$57,494.53
=
$172,100.02
Total Current
Assets
÷
Total
Current
Liabilities
=
Current
Ratio
$229,594.55
÷
$57,494.53
=
4.0 to 1
=
Working
Capital
Current Ratio
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 22-3

6. 6
TERMS REVIEW
page 653
 long-term liabilities
 working capital
 current ratio
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 22-3

7. 6
TERMS REVIEW
page 653
 long-term liabilities
 working capital
 current ratio
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 22-3