This document provides instructions for preparing a balance sheet, including headings, section layout, and account titles. It describes presenting assets and liabilities with titles and amounts, and a single line between them. It also details the owner's equity section with a capital amount, single line, and total assets equaling total liabilities and owner's equity. Finally, it explains reporting owner's equity in detail with beginning capital, net income, drawings, and ending capital amounts.

1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
LESSON 7-2LESSON 7-2
Balance Sheet Information
on a Work Sheet

2. 2
LESSON 7-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
BALANCE SHEETBALANCE SHEET page 187

3. 3
LESSON 7-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
HEADING OF A BALANCE SHEETHEADING OF A BALANCE SHEET page 187
11
22
33
1. Center the name of the company on the first line.
2. Center the name of the report on the second line.
3. Center the date of the report on the third line.

4. 4
LESSON 7-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
ASSETS AND LIABILITIESASSETS AND LIABILITIES
SECTIONS OF A BALANCE SHEETSECTIONS OF A BALANCE SHEET page 188
44 LiabilitiesLiabilities11 AssetsAssets
Total LiabilitiesTotal Liabilities88
22 Account titlesAccount titles
33 Asset amountsAsset amounts
Single lineSingle line 77
66Liability amountsLiability amounts
55Account titlesAccount titles
Total of liabilitiesTotal of liabilities 99

5. 5
LESSON 7-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
OWNER’S EQUITY SECTION OF AOWNER’S EQUITY SECTION OF A
BALANCE SHEETBALANCE SHEET page 189
77 Total Liab. and
Owner’s Eq.
Total Liab. and
Owner’s Eq.
55 Total AssetsTotal Assets
11 Owner’s EquityOwner’s Equity
22 Account titleAccount title 33Capital amountCapital amount
44 Single lineSingle line
66Total of assetsTotal of assets
88Total of Liabilities and Owner’s EquityTotal of Liabilities and Owner’s Equity
99Compare totalsCompare totals 1010 Double linesDouble lines

6. 6
LESSON 7-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
OWNER’S EQUITY REPORTED IN DETAILOWNER’S EQUITY REPORTED IN DETAIL
ON A BALANCE SHEETON A BALANCE SHEET page 190
22Beginning capital amountBeginning capital amount
66DifferenceDifference
88Current capital amountCurrent capital amount
11 Beginning capitalBeginning capital
33 Net IncomeNet Income
44 DrawingDrawing
Ending capitalEnding capital77
99 Total Liabilities and Owner’s EquityTotal Liabilities and Owner’s Equity
55 Single lineSingle line

7. 6
LESSON 7-2CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
OWNER’S EQUITY REPORTED IN DETAILOWNER’S EQUITY REPORTED IN DETAIL
ON A BALANCE SHEETON A BALANCE SHEET page 190
22Beginning capital amountBeginning capital amount
66DifferenceDifference
88Current capital amountCurrent capital amount
11 Beginning capitalBeginning capital
33 Net IncomeNet Income
44 DrawingDrawing
Ending capitalEnding capital77
99 Total Liabilities and Owner’s EquityTotal Liabilities and Owner’s Equity
55 Single lineSingle line