The Balance Sheet shows a picture of the assets, liabilities and equity (net worth) of a business as of a specific day. The Balance Sheet shows two views of the business -- what resources you own (Assets) and the credit or investment that made it possible to acquire these resources (Liabilities and Equity).
The basic equation of a Balance Sheet is Assets = Liabilities + Equity. In other words, what you own equals what you owe plus what the business is worth.
The following example shows some of the common elements of the Balance Sheet.
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Sample Company Balance Sheet For Period Ending December 31, xxxx |
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| Assets | ||
| Cash | ||
| Checking Account | 1,256.00 | |
| Savings Account | 8,600.00 | |
| Petty Cash | 100.00 | |
| Total Cash | 9,956.00 | |
| Other Assets | ||
| Vehicles | 11,385.00 | |
| Buildings | 50,483.25 | |
| Equipment | 43,249.04 | |
| Furnishings | 13,317.67 | |
| Stocks & Bonds | 16,588.00 | |
| Total Other Assets | 135,022.96 | |
| Total Assets | 144,978.96 | |
| Liabilities | ||
| Liabilities | ||
| Bank Line of Credit | 35,000.00 | |
| Mortgages Due | 45,554.00 | |
| Total Liabilities | 80,554.00 | |
| Equity | ||
| Owner's Equity | 64,424.96 | |
| Total Equity | 64,424.96 | |
| Total Liabilities and Equity | 144,978.96 | |
