SAMPLE "BALANCE SHEET"
Most accounting balance linens classify a company's resources and debts into unique groupings including Current Possessions; Property, Grow, and Products; Current Debts; etc . These kinds of classifications make the balance sheet even more useful. The next balance sheet example is a labeled balance sheet.
Test Balance Sheet:
December 31, 2010
ASSETS| | | LIABILITIES
Current Assets| | | Current Liabilities|
| Cash| $ 2, 100 | | | Notes Payable| $ 5, 000
| Petty Cash| 75 | | | Accounts Payable| 35, 900
| Temporary Investments| 10, 500 | | | Income Payable| eight, 500 | | Accounts Receivable -- net| 45, 500 | | | Interest Payable| 2, 900 | | Inventory| 23, 000 | | | Taxes Payable| 6, 95
| Supplies| several, 800 | | | Warranty Liability| 1, 90
| Prepaid Insurance| 1, five-hundred | | | Unearned Revenues| one particular, 500 | | | Total Current Assets| 89, 000 | | | | Total Current Liabilities| 61, 000 | --
Investments| thirty six, 000 | | Long-term Liabilities|
| | | | | Paperwork Payable| 20, 000
Property, Herb & Equipment| | | Bonds Payable| 400, 000 | | Land| five, 500 | | | | Total Long-term Liabilities| 420, 000 | | Land Advancements | 6, 500 | | | | |
| Buildings| one hundred and eighty, 000 | | | | |
| Equipment| 201, 000 | | Total Liabilities| 481, 000 | | Much less: Accum Depreciation| (56, 000)| | |
| | Brace, Plant & Equip -- net| 337, 000 | | | |
Intangible Assets| | | STOCKHOLDERS' EQUITY|
| Goodwill| 105, 500 | | | Common Stock| one hundred ten, 000
| Trade Names| 200, 000 | | | Stored Earnings| 229, 000 | | | Total Intangible Assets| 305, 000 | | | Less: Treasury Stock| (50, 000)| | | | | | | Total Stockholders' Equity| 289, 500
Additional Assets| 3, 000 | | | |
Total Assets| $770, 000 | | Total Liab. & Stockholders' Equity| $770, 000
The notes to the sample balance sheet have been disregarded.
General Discussion of Balance Sheet
The total amount sheet reviews a industry’s assets, debts, and stockholders' equity as of a specific day, such as January 31, 2010, September twenty eight, 2010, etc . General Discussion of Balance Sheet
GENERAL DISCUSSION ON BALANCE SHEET
The accountants' cost principle and the monetary device assumption will certainly limit the assets reported on the "balance sheet". Assets will be reported
(1) only if they were acquired in a transaction, and
(2) generally at an sum that is not higher than the asset's cost at the time of the deal.
This means that a company's creative and successful management staff will not be outlined as an asset. Similarly, a company's outstanding reputation, its unique product lines, and brand names developed within the business will not be reported on the balance sheet. As you may surmise, these materials are often the most valuable of all of the things owned by the company. (Brand labels purchased from another company will be registered in the business accounting data at their cost. )
The accountants' matching rule will result in possessions such as structures, equipment, furnishings, fixtures, automobiles, etc . staying reported at amounts below cost. This is because these resources are declined. Depreciation reduces an asset's book value each year and the amount in the reduction is usually reported since Depreciation Expenditure on the income statement.
While depreciation is reducing the book benefit of certain assets more than their beneficial lives, the present value (or fair marketplace value) of the assets may actually be increasing. (It is usually possible that the existing value of some assetsвЂ“such as computersвЂ“may be lessening faster compared to the book benefit. )
Current assets just like Cash, Accounts Receivable, Products on hand, Supplies, Prepay Insurance, and so forth usually have current values which have been close to the portions reported around the balance sheet.
Current liabilities just like Notes Payable (due...