Balance Sheet Practice

Question 1

Answer 1

Question 2

Complete a balance sheet for Tom’s Lawn Service for the 1st of June using the following information:

• Tom owes his dad, Mr. Green, $150
• $867 in cash
• Kemper’s Lawn Shop is owed $83
• $133 supplies on hand
• $600 paid for 6-months insurance premium
• $175 worth of equipment
• Tom’s investmented $1,542 into Tom’s Lawn Service

Answer 2

Question 3

Steps to Completing a Balance Sheet

(Heading)

Answer 3

• Line 1 - Center the name of the company
• Line 2 - Center the name of the accounting statement (Balance Sheet)
• Line 3 - Center the date

Question 4

Steps to Completing a Balance Sheet

(Assets Section)

Answer 4

1. Center the word Assets on the first line of the widest column on the left side of the balance sheet
2. Just below the Assets title, list each asset and its amount.
3. Draw a single line under amounts when done

Question 5

Steps to Completing a Balance Sheet

(Liability Section)

Answer 5

• Center the word Liabilities on the first line of the widest column on the right side of the balance sheet
• Just below the Liability title, list each liability and its amount
• Draw a straigh line just below the amount of the last liability.
• One the line just below the last ability, write “Total Liabilities.”
• Add the amounts of all the liabilites and write that amount in the amoutn column

Question 6

Steps to Completing a Balance Sheet

(Owner’s Equity Section)

Answer 6

• Skip one blank line on the right side of the balance sheet and center the words Owner’s Equity in the widest column on the right side of the balance sheet.
• On the next line, write the name of the owner(,)Capital
• Figure the amount of capital (Total Liabilities - Total Assets)
• Write the amount in the amount column on the same line as the name of hte owner(s)

Question 7

Steps to Completing a Balance Sheet

(Final)

Answer 7

• Directly below the amount of capital, draw a single line
• On the left side of the balance sheet, draw a single line across the column on the same line as the single line on the right side of the balance sheet.
• Add both the left side of the balance sheet and the right side of the balance sheet and make sure the two sides are equal.
• Write the totals in both the left and right columns just below the single ruled line
• Write the words Total Assets in the widest column on the left side of the balance sheet on the same line as the left-side total. (We don’t usually have the same number of lines on both sides of a balance sheet. To make the balance sheet look professional, we always write the totals on the same line on both sides of the balance sheet.)
• Write the words Total Liabilities and Owner’s Equity in the widest column on the right side of the balance sheet. Be sure to write it on the same line as the asset totals, on the left side of the balance sheet. (You may abbrevi-ate only when you’re short of space.)
• Draw a double-ruled line just below the totals in both the left and right amount columns.