acct120 class #9 the account form balancing sheet
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Introduction Introduction toto
Accounting Accounting 120120
Mr. Binet / Moncton High School
Class #8: The Balance Sheet
1. Brief review from last class: Assets, Liabilities and Equity.
2. The Fundamental Accounting Equation.
3. Worksheet Assignment4. The Account Form Balance Sheet
In Today’s Class…In Today’s Class…
Financial position is the monetary value of an individual or company. To determine the financial position of a company or an individual, simply:
Determine Assets:Assets are things that are owned and have value. An example of an asset is: Computer $3 500.00.
Determine Liabilities:Liabilities are debts, also known as, claims against the assets. An example of a liability is: Bank Loan $1 500.00.
Determine Owner's Equity:Determine the difference between the total assets and total liabilities. Owner's Equity is also referred to as Capital, Equity or Net Worth.
Financial PositionFinancial Position
Total assets minus total liabilities equal owner's equity. This relationship is known as the Fundamental Accounting Equation:
A - L = OEAssets - Liabilities = Owner's Equity
The equation may also be stated as: A = L + OE
Assets = Liabilities + Owner's Equity The fundamental accounting equation
is the basis of accounting theory.
The Fundamental Accounting EquationThe Fundamental Accounting Equation
Go to the O: drive and in the “BINET” folder find assignment #1. Open it, and immediately “SAVE AS” on to your “U” drive.
Go ahead and complete (individually) the assignment.
Take your time and go over it slowly, this is a basis for the rest of the course!
Login to your email (https://exchange.nbss.nbed.nb.ca).
When you are finished, submit the assignment to me via e-mail ([email protected]) with the subject “Unit 2, Assignment 1”.
Accounting Equation AssignmentAccounting Equation Assignment
A balance sheet is a report that illustrates the financial position of a person, business or organization. There are two formats for preparing a balance sheet:
1. Account Form balance sheet: lists the assets in the left column and the liabilities and owner's equity in the right column.
2. Report Form balance sheet: The report form balance sheet will be introduced later.
We will begin by learning how to create an account form balance sheet.
The Account Form Balance SheetThe Account Form Balance Sheet
Samantha Palmer’s Balance SheetSamantha Palmer’s Balance Sheet
Notice the balance sheet is a formal representation of the fundamental accounting equation A = L + OE.
The Account Form Balance SheetThe Account Form Balance Sheet
Accounting is particular with formatting details. The following pages outline guidelines for properly preparing an account form balance sheet.
The balance sheet requires a three-line heading. The heading informs:
Who? -The name of the individual, business or organization for which the information is prepared.What? -The name of the financial report.When? -The date the financial report was prepared. The date must be recorded in full (e.g. September 30, 2003).
The heading is written one item per line and always in the same order: Who?-line 1, What?-line 2 and When?-line3.
The sub-headings Assets, Liabilities and Owner's Equity are underlined and centered in the appropriate column and row.
Formatting GuidelinesFormatting Guidelines
Go to the O: drive and in the “BINET” folder find Unit II, Assignment #2. Open it, and immediately “SAVE AS” on to your “U” drive.
Go ahead and complete (individually) the assignment. Take your time and go over it slowly, this is a basis for the
rest of the course! Login to your email (https://exchange.nbss.nbed.nb.ca). When you are finished, submit the assignment to me via
e-mail ([email protected]) with the subject “Unit II, Assignment 2”.
Assignment Time!Assignment Time!