Preparing Financial Statements

The tasks and samples in this section will help you better understand the terms used in financial statements, especially in a balance sheet. Note that the balance sheet may also be referred to as the Statement of Financial Position and the income statement may also be referred to as the Statement of Operations or Financial Activities.

Task 1: What belongs where?

Using your knowledge of accounting, categorize the following accounts as belonging
to the balance sheet statement or the income statement.

General Expense 180
Cash 2,555
Equipment Expense 765
Accounts Receivable 3,700
T. Mott, Capital 18,735
T. Mott, Drawings 9,500
Fees Earned 29,990
Office Supplies 284
Prepaid Insurance 1,000
Tapes 3,000
Car 12,300
Equipment 30,000
Repairs Expense 1,876
Telephone Expense 220
Advertising Expense 2,880
Revenue from Repairs 10,235
Accounts Payable 1,600
Bank Loan 7,700
$68,260 $68,260