You are on page 1of 3

Instructions for a Simple Balance Sheet

Love Thy Pet Inc., Balance Sheet December 31, 2011


Assets Cash Short-term investments Accounts Receivable Pet Supplies Prepaid Insurance Prepaid Rent Investment in Intel Stock Investment in real estate Land Building Pet Store Equipment, net Office Equipment, net Trademark Total Assets Liabilities and Stockholders Equity Liabilities: Notes Payable current portion Accounts Payable Salaries and Wages Payable Unearned Sales Revenue Mortgage Payable Notes Payable long-term portion Total Liabilities Stockholders Equity: Common Stock Retained Earnings Total Stockholders Equity Total Liabilities and Stockholders Equity $XX,XXX XX,XXX XX,XXX X,XXX X,XXX X,XXX X,XXX X,XXX XX,XXX XX,XXX XX,XXX XX,XXX X,XXX $XX,XXX

$XX,XXX XX,XXX XX,XXX XX,XXX X,XXX XX,XXX $XX,XXX XX,XXX XX,XXX XX,XXX $XX,XXX

MJC Revised 10/2011

Page 1

Instructions for a Simple Balance Sheet

MJC Revised 10/2011

Page 2

Instructions for a Simple Balance Sheet


Step-by-Step Instructions
Always start with three-line header which includes the name of the company, the title of the statement and the period for which the statement is being prepared. In the case of a balance sheet the date is always the end date for the fiscal period.

Asset Section of the Simple Balance Sheet


1. On the first line of the body of the statement in the center of the first column, place the title Assets. No currency amount will be placed on this line. 2. On the next, few lines on the statement list all assets in order of liquidity (how fast the assets can be changed into cash). Please the currency amounts in the middle column. 3. Add all of the asset dollar amounts together and place the total in the far right hand column. Place the Label Total Assets in the far left hand column.

Liabilities and Stockholders Equity section of the Simple Balance Sheet


1. This section will start with the title Liabilities and Stockholders Equity centered in the left hand column. Again since this is a header it will not have a currency amount in the far right hand column. 2. On the next line in the far left hand column place the section label Liabilities. Since this is a label no currency amount will be placed in the right hand column. 3. Next list all of the liabilities in order of magnitude (from hightest to lowest). Place the currency amounts in the middle column. 4. Finely, add the currency amounts in the middle column, then place the total in the far right hand column. Place the Label Total Liabilites in the far left hand column. 5. Next place the section heading Stockholders equity in the far left hand column. No currency amount is required for this line. 6. List in order on the next two lines Common Stock and Retained earnings. 7. Next total the dollar amounts for common stock and retained earngs. Place the dollar amount in the right hand column. Label this line Total Stockholders Equity. 8. The final line will be labeled Total Liabilities and Stockholders Equity. Add total liabilites and total stockholders equity together and place the dollar amount in the left hand column. The total for this line must match the total assets line in order for the statement to balance. Double underline the total and do not forget the dollar sign. Final Note: Before the Balance sheet can be prepared you must do a income statement and a retained earnings statement because all three statements are interrelated. MJC Revised 10/2011 Page 3