Preparing Financial Statements
For your information . . .
Two examples of classified financial statements are presented here for you to examine.
Classified Financial Statements:
REPORT FORM of Balance Sheet:
The Toronto Hotel
Balance Sheet
October 31, 1997
Assets | |||
Current Assets | |||
Cash | $9 300 | ||
Accounts Receivable | 2 000 | ||
Supplies | 6 000 | ||
Total Current Assets | $17,300 | ||
Fixed Assets | |||
Land | 50 000 | ||
Building | 500 000 | ||
Room Furniture | 110 000 | ||
Office Equipment | 5 000 | ||
Total Fixed Assets | 665 000 | ||
Total Assets | $682 300 | ||
Liabilities and Owner’s Equity | |||
Current Liabilities | |||
Accounts Payable | $24 000 | ||
Long-Term Liabilities | |||
Bank Loan | $15 000 | ||
Mortgage Payable | 100 000 | ||
Total Long-Term Liabilities | 115 000 | ||
Total Liabilities | 139 000 | ||
Owner’s Equity | |||
Smith, Capital Oct. 1 | 536 000 | ||
Add: Net Income for October | $8 200 | ||
Less: Smith, Drawings | 900 | ||
Increase in Capital | 7 300 | ||
Smith, Capital Oct. 31 | 543 300 | ||
Total Liabilities and Owner’s Equity | $682 300 |
ACCOUNT FORM of Balance Sheet:
The Toronto Hotel
Balance Sheet
October 31, 1997
Assets | Liabilities | |||||
Cash | $9 300 | Accounts Payable | $24 000 | |||
Accounts Receivable | 2 000 | Bank Loan | 15 000 | |||
Supplies | 6 000 | Mortgage Payable | 100 000 | |||
Land | 50 000 | Total Liabilities | 139 000 | |||
Building | 500 000 | |||||
Room Furniture | 110 000 | Owner’s Equity | ||||
Office Equipment | 5 000 | Smith, Capital, Oct. 1 | $536 000 | |||
Add: Net Income for Oct. | $8 200 | |||||
Less: Smith, Drawings | 900 | |||||
Increase in Capital | 7 300 | |||||
Smith, Capital, Oct. 31 | 543 300 | |||||
Total Assets | $682 300 | Total Liabilities and Owner’s Equity |
$682 300 |
BALANCE SHEET ACCOUNT CATEGORIES:
Current Assets | Fixed Assets | Current Liabilities | Long-Term Liabilities |
Cash | Land | Accounts Payable | Bank Loan |
Government Bonds | Building | Taxes Payable | Mortgage Payable |
Marketable Securities | Furniture | Furniture Salaries Payable | |
Accounts Receivable | Equipment | Short-term Loans | |
Supplies | Trucks |
Adapted from: Meigs, W.B., R.F. Heigs, and W.P. Lam. Accounting: The Basis
for Business Decisions. Toronto: John Deyell Co., 1985; and D’Amico, V., and
J. Magnan. Accounting – An Introduction. Mississauga: Copp Clark-Pitman Ltd.,
1991.