Balance Sheet

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Balance Sheet
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In Accounting, An Itemized Statement Of What One
Owns, What One Owes, and What One Is Worth Is
Called A
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Balance Sheet
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The First Step In Setting Up Records Is To Find
Out
1. What One Owns 2. What One Owes 3.
What One Is Worth
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Balance Sheet Reports What A Business

Owns-Assets
Owes-Liabilities
Worth-Owners Equity
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(Name of Business) Navarros Car Wash
(Name of Form) Balance Sheet
(Date) June 30, 2007
Navarros Car Wash Balance Sheet June 30, 2007
Center
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Sample
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Three Sections of a Balance Sheet

• Assets
• Liabilities
• Owners Equity

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Assets-(lst Section)

• Things You Own
• Examples
• Supplies
• Cash
• Equipment

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Sample
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Liabilities-2nd Section
Things A Business Owes -Accounts Payable-Sears,
Inc. -Accounts Payable-IBM Company
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Sample
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Owner's Equity
What A Business Is Worth -Jose L. Navarro,
Capital -Jose L. Navarro, Withdrawals
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Owner's Equity
The Worth Of A Business -Joe Navarro,
Capital -Joe Navarro, Withdrawals
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Sample
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The Accounting Equation
A L O.E.
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Jon Clark, For Example, Owns The Following
Cash On Hand 5,500 Equipment
25,000 Supplies
2,000 Office Equipment 5,000 Office Supplies
1,000 Total Amount Owned 38,500
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Jon Clark Owes The Following
Owed To TG Supply 1,000 Owed To
Max Furniture
400 Total Amount Owed 1,400
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Assets Must Equal Liabilities Owner's Equity
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The Accounting Equation

• Assets Liabilities Owners Equity
• 38,500 1,400 37,100

Owns Owes Worth
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Here Is The Process
Jon Clark Owns 38,500 Jon Clark Owes
1,400 Jon Clark Is Worth 37,100
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By Subtracting What Jon Clark Owes (1,400) From
What He Owns (38,500) We Find What He Is Worth.
Formula
Owns - Owes Worth
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Summary

• Balance Sheet Reports
• What A Business Owns-Assets
• What A Business Owes-Liabilities
• What A Business is Worth-Owners Equity
  

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Prepare a Balance Sheet