LESSON 7-2

1. LESSON 7-2 Balance Sheet Information on a Work Sheet

2. BALANCE SHEET page 187 LESSON 7-2

3. HEADING OF A BALANCE SHEET page 187 1 2 3 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. LESSON 7-2

4. 1 Assets 2 Account titles 3 Asset amounts ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET page 188 LESSON 7-2

5. 6 Liability amounts 5 Account titles 4 Liabilities 7 Single line 8 Total Liabilities 9 Total of liabilities ASSETS AND LIABILITIES SECTIONS OF A BALANCE SHEET page 188 LESSON 7-2

6. 1 Owner’s Equity 2 Account title 3 Capital amount 4 Single line OWNER’S EQUITY SECTION OF A BALANCE SHEET page 189 Capital Amount = Capital – Drawing + Net Income (or –Net Loss) LESSON 7-2

7. 5 Total Assets 7 Total Liab. and Owner’s Eq. 9 Compare totals 6 Total of assets 10 8 Double lines Total of Liabilities and Owner’s Equity OWNER’S EQUITY SECTION OF A BALANCE SHEET page 189 LESSON 7-2

8. 3 Net Income Current capital amount 8 1 Beginning capital Difference 6 Beginning capital amount 2 7 Ending capital 5 Single line 4 9 Drawing Total Liabilities and Owner’s Equity OWNER’S EQUITY REPORTED IN DETAIL ON A BALANCE SHEET page 190 LESSON 7-2