Balance sheet is a report of the balances in the permanent accounts on a specific date.
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Steps to creating a balance sheet1.) Write the heading on the three lines across the top (Who? What? When?)
2.) Write the word assets in the center of the first column. 3.) On the following lines, list each asset account and there account balances in the order they appear on the worksheet. Draw a single rule under the last amount. 4.) On the next line, write total assets indented about a half inch and enter the total amount of all assets. 5.) Under total assets, on the next line, center the word liabilities. 6.) On the following lines, enter in all the liability accounts and there final balances. Draw a single rule under the last amount. 7.) Write total liabilities indented about a half inch and enter the amount. 8.) Center the title owners equity on the line after. 9.) Enter ending capital of the date and use the amount at the end of the statement of change in owners equity. 10.) Add the owners equity final balance and the liabilities account. This should equal the amount in the total assets account. If it does, draw a double rule under both numbers to show they balance. |