Balance Sheet

In Accounting, An Itemized Statement Of What One Owns, What One Owes, and What One Is Worth Is Called A:

The First Step In Setting Up Records Is To Find Out:

1. What One Owns

2. What One Owes

3. What One Is Worth

Balance Sheet Reports What A Business

Owns-Assets

Owes-Liabilities

Worth-Owner’s Equity

(Name of Business) Navarro’s Car Wash

(Name of Form) Balance Sheet

(Date) June 30, 2007

Navarro’s Car Wash

Balance Sheet

June 30, 2007

Navarro’s Car WashBalance SheetJune 30, 2006

Three Sections of a Balance Sheet

• Assets

• Liabilities

• Owner’s Equity

Assets-(lst Section)

• Things You Own

• Examples:SuppliesCashEquipment

Navarro’s Car WashBalance SheetJune 30, 2006

Assets

Cash On Hand

Equipment

Supplies

Total Assets

Things A Business Owes

-Accounts Payable-Sears, Inc.

-Accounts Payable-IBM Company

Navarro’s Car WashBalance SheetJune 30, 2006

Assets

Cash

Equipment

Supplies

Total Assets

Liabilities

Accounts Pay.-IBM

Accounts Pay./Sears, Inc.

Total Liabilities

What A Business Is Worth

-Jose L. Navarro, Capital

-Jose L. Navarro, Withdrawals

The Worth Of A Business

-Joe Navarro, Capital

-Joe Navarro, Withdrawals

Navarro’s Car WashBalance SheetJune 30, 2006

Assets

Cash

Equipment

Supplies

Total Assets

Liabilities

Dell Computers

Accounts Pay./TG Supplies

Total Liabilities

Owner’s Equity

JL Navarro, Capital

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

Jon Clark Owes The Following:

Owed To TG Supply 1,000

Owed To Max

Furniture 400

Total Amount Owed $ 1,400

The Accounting Equation

Assets = Liabilities + Owner’s Equity$38,500 = $1,400 + $37,100

Jon Clark Owns $38,500

Jon Clark Owes 1,400

Jon Clark Is Worth $37,100

Here Is The Process:

By Subtracting What Jon Clark Owes ($1,400) From What He Owns ($38,500) We Find What He Is Worth.

Summary

Balance Sheet Reports:

• What A Business Owns-Assets• What A Business Owes-Liabilities

• What A Business is Worth-Owner’s Equity