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How To Do A Balance Sheet
ChannelSuperfastCPADescription from the creator
How to do a balance sheet: a balance sheet is a financial document that shows the assets, liabilities, and owners' equity of a company at a given point in time. It's different from the income statement in that it is a snapshot on any given day, whereas the income statement spans a time period. Most companies prepare their balance sheets quarterly and yearly.
How To Do A Balance Sheet
To put together a balance sheet, you'll obviously need all of the financial data from your different trial balances. In reality, the information for a balance sheet starts with the individual transactions, but the purpose of this article is just to show you how to organize a balance sheet.
First of all, there are two sides to the balance sheet: the right and left side. On the left side, you'll have your assets. On the right side, you'll have two sections: liabilities and owners' equity. The left and right side will always be equal, and the main balance sheet equation is:
Assets = Liabilities + Owners' Equity
This makes sense because the Assets are on the left side, and it will always equal what is on the right side, which is the Liabilities and Owners' Equity accounts added together.
About this tutorial
SuperfastCPA published this 5:37 video tutorial on October 25, 2012. It has been watched 1,557,935 times on YouTube.
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- 5:37
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- October 25, 2012
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Further reading
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How to Prepare a Balance Sheet: 5 Steps for Beginners | HBS ...
online.hbs.edu
How to Prepare a Basic Balance Sheet. Here are the steps you can follow to create a basic balance sheet for your organization. Even if some or all of the process is automated through the use of an accounting system or s…
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How to Prepare a Balance Sheet
thebalancesmb.com
The last asset on the sample balance sheet is fixed assets. This asset is stated on Line 4 and includes any equipment and vehicles you own and any land and buildings you own. These assets normally refer to the large and…
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How to Make a Balance Sheet for Accounting: 13 Steps
wikihow.com
Choose the date for the balance sheet. The balance sheet is created to show the assets, liabilities, and equity of a company on a specific day of the year. Usually companies prepare an official balance sheet quarterly (…