Lesson: 4
Topic: Introduction to the Balance Sheet
Objectives:
During this lesson the class will examine the structure, and the function, of the Balance Sheet. We will also examine a few of the accounts that would typically be placed within a Balance Sheet, such as:
Consider once again the structure of the Accounting Equation:
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We could place assets on the left side, and then place liabilities and owner's equity on the right side. According to the equation, the left side of the balance sheet would then have to equal the right side of the balance sheet. (Hence the name "Balance" Sheet.)
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Example
| Cash | $1,500.00 | Bank Loan | $3,000.00 |
| Equipment | 2,500.00 | Total Liabilities | 3,000.00 |
| Furniture | 500.00 | ||
| Capital | $1,500.00 | ||
| _______ | _______ | ||
| Total Assets | $4,500.00 | Total L & O.E. | $4,500.00 |
| ======= | ======= |
Method of Instruction and Evaluation:
After a Socratic lesson guided by the PowerPoint entitled Exploring the Balance Sheet, the student will complete the following exercises:
Complete problem 2 on page 25 within your text.
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The New Western Company in Fort Frances, Ontario, owned by Guy Albrecht, had the
following assets and liabilities on March 31, 200_. Prepare a balance sheet for
the company as of that date.
Resources: balance sheet |
References: