Balance Sheet

The balance sheet is the company's financial position at a point in time. In other words, a snapshot of where you stand, financially. Here you will list your assets and liabilities and then subtract the difference, which is called owner's equity (or net worth). Accountants look at the balance sheet as an equation where assets = liabilities + owner's equity. This is known as the "accounting equation".

You can a balance sheet template and other financial forms at the U.S. Chamber of Commerce site. It is included with the small business startup kit. Below is a sample of a fictitious balance sheet:

Your Company
Balance Sheet
1/1/2008
               
Assets
               
Current Assets:            
Cash         $8,500    
Accounts Receivable   $2,250        
Less: Reserve for Bad Debts   0   2,250    
Merchandise Inventory       16,250    
Prepaid Expenses       500    
Notes Receivable        0    
  Total Current Assets           $27,500
               
Fixed Assets:            
Vehicles   62,000        
Less: Accumulated Depreciation   5,500   56,500    
               
Furniture and Fixtures   7,200        
Less: Accumulated Depreciation   500   6,700    
               
Equipment   155,000        
Less: Accumulated Depreciation   8,650   146,350    
               
Buildings   800,000        
Less: Accumulated Depreciation   15,500   784,500    
               
Land         0     
  Total Fixed Assets           994,050
               
Other Assets:            
Goodwill       0    
  Total Other Assets           0
               
Total Assets            $1,021,550
               
               
Liabilities and Capital
               
Current Liabilities:            
Accounts Payable       $4,710    
Sales Taxes Payable       600    
Payroll Taxes Payable       0    
Accrued Wages Payable       380    
Unearned Revenues       0    
Short-Term Notes Payable       0    
Short-Term Bank Loan Payable       0    
  Total Current Liabilities           $5,690
               
Long-Term Liabilities:            
Long-Term Notes Payable       86,000    
Mortgage Payable       0    
  Total Long-Term Liabilities           86,000
               
Total Liabilities           91,690
               
               
Capital:            
Owner's Equity       102,000    
Net Profit       827,860    
Total Capital           929,860
               
Total Liabilities and Capital           $1,021,550
                
               





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