Preparing Financial Statements
Answer key to task 2
- Task 1: What belongs Where
- Answer key to task 1
- Task 2: Preparation of Balance Sheet
- Answer key to task 2
- Samples: Classified Financial Statements
T. Mott, DJ
Balance Sheet
October 31, 1997
| Assets | Liabilities and Owner’s Equity | ||||
| Cash | $2,555 | Liabilities: | |||
| Accounts Receivables | 3,700 | Accounts Payable | $1,600 | ||
| Office Supplies | 284 | Bank Loan | 7,700 | ||
| Prepaid Insurance | 1,000 | Total Liabilities | $9,300 | ||
| Tapes | 3,000 | Owner’s Equity | |||
| Car | 12,300 | T.Mott, Capital, Oct. 1, 1997 | $18,735 | ||
| Equipment | 30,000 | Net Income for October | 34,304 | ||
| Total Assets | $52,839 | Subtotal | $53,039 | ||
| Less: T. Mott, Drawings | 9,500 | ||||
| T.Mott, Capital, Oct. 31, 1997 | $43,539 | ||||
| Total Liabilities and owner’s equity | $52,839 | ||||
Note: Net Income for October:
Total Revenues – Total Expenses = Net Income
Total Revenue = $29,990 + $10,235
Total Expenses = $2,880 + 220 + 1,876 + 765 + 180